Sweden has a housing shortage, which the Swedish authorities expect to continue until 2025. Producers of wooden multi-family houses have a relatively small market share in comparison to traditional building materials. The limited capability to fulfil the increased building demand also restricts the possibilities for development towards innovation, bio-economy and sustainability. The municipalities in Sweden have responsible for planning of the building development in their region based on their projected requirements and strategies. Combining this with a desire to develop sustainable building solutions based on wood increases the complexity. Currently, public building developments are achieved through the public procurement act or the land allocation activity, dependent on their development strategy. This normally involves the development of local strategies regarding, e.g. design, material choice and geographical development. By identifying market drivers enables improved market entry activities related to public building initiatives using wood-based solutions. Hence, by improving transparency in the land allocation activity generate enhanced possibilities for the companies to respond successfully to the requests submitted by the municipalities. This knowledge is used to better understand the required strategic development for the companies, the government and the municipalities to increase the use of sustainable building materials in Swedish multi-family housing projects.