Abstract: To achieve the necessary reduction of greenhouse gas emissions by 2030 and climate neutrality by 2050, the building sector's significant contribution to emissions must be addressed. This study evaluates a prefabricated wooden single-family house and compares it to hypothetical designs using alternative materials. Different scenarios were analyzed to assess the carbon footprint and life cycle cost (LCC). The results emphasize the dominance of the use phase in determining the carbon footprint, despite improvements in energy performance from construction materials. Balancing the reduction of carbon footprint with buyer affordability proves challenging. Considering both investment cost and environmental impact is crucial when designing and constructing new buildings.Acknowledgment: The authors from InnoRenew CoE gratefully acknowledge receiving funding from the European Commission for funding the InnoRenew CoE project (Grant Agreement #739574) under the H2020 Widespread-Teaming programme, and the Republic of Slovenia (Investment funding of the Republic of Slovenia and the European Union of the European Regional Development Fund).