The industry of wooden single-family houses in Sweden faces several challenges; both with regards to production but also with regards to the market conditions. In order to avoid uncontrolled price increases of wooden single-family houses, an act regulating the cash contribution when purchasing a house has been introduced. This has led to an increased focus of the house price as well as on the individual producers to control its processes and thereby its costs. The purpose of this paper is to give an overview of existing research related to product and production developments related to the industry, identifying research gaps, and suggest research activities. This research has been carried out as a literature study focusing on these concepts. It concludes that existing research is fragmented and that the linkage between the consumer and the product is neglected as well as the holistic approach is missing in development activities. The authors propose that in order to study how the industry could come closer to their consumer markets and the aligned requirements as well as to facilitate product development, the Means-End Chain approach may be of use and that the approach could further be linked to Quality Function Deployment.