Timber Construction 2025: Key Trends, Projects, and Opportunities

Timber is rapidly becoming a cornerstone of sustainable construction, with 2025 set to be a defining year. The global construction sector is increasingly embracing wood as a low-carbon alternative to traditional materials like concrete and steel. With exciting projects underway and growing interest in sustainable practices, timber is shaping the future of the built environment. Let’s explore the trends, major developments, and opportunities that will define timber construction in 2025.

Major Timber Projects on the Horizon

1.1. Stockholm Wood City, Sweden

One of the most ambitious timber construction projects on the planet, Stockholm Wood City, is slated to begin construction in 2025. Designed to be the largest urban development built entirely from wood, this project will span an incredible 250,000 square meters. When complete, the city will house 2,000 residential units and 7,000 office spaces, blending sustainability with modern urban living.

Stockholm Wood City showcases how timber can redefine urban planning by addressing both environmental concerns and housing shortages. The use of engineered timber—such as cross-laminated timber (CLT) and glue-laminated timber (glulam)—will significantly reduce the project’s carbon footprint compared to traditional materials. Beyond its green credentials, the development highlights timber’s potential in large-scale, mixed-use construction.

A rendering of Wood City shows what life in a timber-made community might look like. 
Courtesy Atrium Ljungberg

2. Halo, Sydney, Australia

Australia is pushing the boundaries of timber construction architecture with Halo, a 220-meter hybrid timber skyscraper planned for Sydney’s central business district. Upon completion, Halo will claim the title of the world’s tallest timber tower. The project, led by Lendlease in partnership with Milligan Group, is more than just an architectural marvel; it’s a testament to timber’s viability in high-rise construction.

Halo’s design incorporates innovative features, such as a façade-mounted photovoltaic array (wall mounted solar panels) to generate solar power, and low-carbon concrete for added structural integrity. The building will house 40,000 square meters of office space, a 4,000-square-meter wellness Centre and a variety of restaurants and retail spaces. This project exemplifies the growing trend of combining timber with other materials in hybrid designs to achieve both performance and sustainability.

The World’s Tallest Hybrid Timber Tower is Under Construction in Sydney, Australia

Courtesy of SHoP / BVN

3. Ascent Tower, USA

In Milwaukee, Wisconsin, the Ascent Tower has set a precedent for high-rise timber construction. While completed in 2022, it remains a key reference for projects planned in 2025. The 25-story residential building has inspired similar developments worldwide by demonstrating how mass timber can support significant loads, meet strict fire safety standards, and offer aesthetic and environmental advantages.

Photo courtesy of C.D. Smith

Timber’s Environmental and Economic Benefits

Timber construction offers significant advantages over traditional materials. As we look to 2025, these benefits will drive its adoption in both residential and commercial projects.

1. Carbon Reduction

One of timber’s most compelling attributes is its ability to store carbon. Unlike steel and concrete, which produce large amounts of CO2 during manufacturing, timber acts as a carbon sink, capturing and storing CO2 throughout its lifecycle. According to research by the World Green Building Council, using timber in construction can reduce a building’s embodied carbon by up to 60%.

2. Faster Construction Times

Prefabricated timber components, such as CLT panels, enable faster assembly on-site compared to traditional methods. This not only saves time but also reduces labour costs and minimizes disruption in urban areas. As labour shortages continue to challenge the construction sector, timber’s efficiency makes it an increasingly attractive option.

3. Renewable Resource

Timber is a renewable material, provided it is sourced responsibly. Certification schemes like the Forest Stewardship Council® ensure that timber used in construction comes from sustainably managed forests. By promoting responsible sourcing, the construction industry can support reforestation and biodiversity conservation.

Challenges and Opportunities Ahead

While timber construction presents numerous benefits, it also faces challenges that the industry must address to unlock its full potential.

1. Fire Safety Concerns

Despite advances in fire-resistant treatments and design techniques, misconceptions about timber’s fire performance remain a barrier. Public awareness campaigns and updated building codes will be crucial in dispelling these myths and ensuring safe implementation.

2. Labour and Skills Shortages

As timber construction grows, so does the need for skilled workers familiar with modern timber construction techniques. Investing in training and education will be essential for scaling up timber use in 2025 and beyond.

3. Research and Innovation

Ongoing research into engineered timber products, such as CLT and laminated veneer lumber (LVL), continues to expand their applications. Innovations like timber-concrete composites and bio-based coatings are opening new possibilities for hybrid structures and improved durability.

The Future of Timber in Construction

As we approach 2025, timber is poised to play a transformative role in shaping sustainable construction. From ground-breaking projects like Stockholm Wood City to supportive policies such as the Future Homes Standard, timber is at the forefront of efforts to reduce carbon emissions and create greener cities.

By overcoming challenges related to fire safety, skills shortages, and public perception, the construction industry can fully embrace the potential for timber construction. With its environmental, economic, and aesthetic benefits, timber is not just a material for the future—it’s a material for today.