Wood construction is often proposed to reduce the construction sector’s greenhouse gas emissions due to its carbon sequestration potential. However, forestry significantly impacts natural water flows and increases water use—a critical concern in Chile. This study evaluates the water footprint of wood construction in Chile, considering direct and indirect water consumption under various scenarios. An input–output model was developed to quantify economic interactions, incorporating a new wood-construction sector based on data from a model house. An environmental extension matrix was also created to account for blue water (groundwater and surface water extraction) and green water (rainwater absorbed from soil) consumption. Future scenarios for the residential building sector were defined based on different growth rates for wood-based construction and current construction methods, and the model was resolved using the scenarios as demand vectors. The results indicate that wood construction’s water footprint is 2.38–2.47 times higher than conventional construction methods, with over 64% linked to forestry’s green water demand. By 2050, increased wood construction could raise the sector’s total water footprint by 30.0–31.8%. These findings underscore the need to assess water consumption as a critical sustainability parameter for wood construction and highlight the value of tools like the water footprint to guide decision-making.
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