The timber sector has been growing strongly in various regions of the world. Yet, the construction industry is still far from being sustainable. One barrier is the economic concern in planning and construction works of timber constructions. This study aims to provide insights on the cost performance of Cross Laminated Timber (CLT) constructions for stakeholders to make an informed decision. It analysed the production cost of multi-story residential buildings with CLT in comparison to concrete in Norway and Sweden. The production cost data of various construction projects with either CLT or concrete was collected and analysed. Interviews with stakeholders were conducted to complement the interpretation of the cost data. The result showed that each project had its individual conditions in the economic background and requirements by client, and thus it was difficult to formulate a general tendency on the cost performance. The variability of the cost was larger and the average production cost was higher in CLT cases. Yet, there are high incentives of contractors and clients for a more sustainable alternative in general. The incentive is also reinforced by the general experience of contractors that the construction cost is better optimized as the contractor gains more experiences.