The widely accepted approach for achieving sustainable and cost-effective housing is a comprehensive selection of building materials. Although affordability is conventionally evaluated in economic terms, this paper introduces a novel assessment method. Material selection problem can be interpreted as an intricate Multi-Criteria Decision Making (MCDM) problem because of large number of criteria involve under uncertainty. The existing methods for selecting building materials fall short in evaluating sustainability principles alongside other criteria, establishing a systematic approach to prioritize, and assign weights to pertinent assessment criteria in ranking methodologies. The aim of this work is to provide a simple and comprehensive Analytic Hierarchy Process (AHP)—Technique for Order of Preference by Similarity to Ideal Solution (TOPSIS) framework for solving holistic low-cost housing material prioritization and selection problem in Mumbai, India. The study considered the ten most crucial criteria and their weights are analysed using AHP and then these weights are integrated in TOPSIS to evaluate the ranking of the most important materials. The sensitivity analysis shows that the cost (Variability Index (VI) of 1.562) is the most influential criteria followed by the sustainability (VI = 1.544) and, durability (VI = 1.543) for holistically selection of the low-cost material. The proposed approach provides an accurate resolution to challenges in prioritizing and selecting low-cost housing materials amidst significant uncertainty. It supports decision-makers and administrators by assisting them in making well-informed choices for strategic initiatives and future planning.