Wood is a natural insulator due to air pockets within its cellular structure, which means that it is 15 times better than masonry, 400 times better than steel, and 1,770 times better than aluminum. In addition, lightweight wood framing methods allow easy installation of additional fibre or foil insulation.
As a result of this improved thermal performance, buildings produced using timber, particularly engineered timber such as Cross Laminated Timber (CLT), Glulam and Laminated Veneer Lumber (LVL) require less energy to heat and cool, resulting in reduced energy bills.
In addition, timber is hygroscopic and has the ability to exchange moisture with the surrounding air whch provides a buffer against short-term changes in humidity and temperature.
Reference: Commonwealth of Australia (2008) Your Home Technical Manual