This research focused on the role of cross-laminated timber (CLT) in the transition to a circular and bio-based housing sector in the province of Zuid-Holland (PZH). A scenario-model framework was used to assess the socio-economic and environmental impacts on the construction sector, as a result of CLT construction in general and as a result of different timber material origins. The central research question is: “What are the impacts of a transition to a housing sector in PZH that is for 20% based on CLT? and could regional CLT production offer socio-economically and environmentally sustainable solutions?”. The outcomes from the scenario analysis show that regional production of CLT is beneficial from a socio-economic perspective, while simultaneously being environmentally sustainable. The CLT required to reach the CLT implementation aim in PZH is sufficient to operate a price-competitive CLT industry. On paper, national timber flows are sufficient to produce this CLT and if national timber flows are not adequately available sawn timber should be imported from other European countries. The most important action points are related to increasing the domestic timber stock, ensuring high-grade application of timber, standardizing and bundling of demand for CLT construction, and ensuring adequate carbon policies to create a financially level playing field.