Industrialised Housebuilding (IH) in Sweden have grown within Multi-Storey Housing made of Timber (MSHT) and most of the producers rely on this approach. Business models for Industrialised Housebuilding, often start with prefabrication. With the rapid growth of sustainability demands and circular construction as an uprising theme, a central question is, what is the sustainability element in Swedish industrialized housebuilders business models regarding MSHT? Sustainable transition theory is adopted. The method is a desk study of existing research, websites, annual reports and other material. The sustainability element in the business models of industrialized house builders is explored, with focus on circular construction. MSHT is described as reducing environmental impact compared to concrete and provides social values, enabling its diffusion, however with less apparent cost advantages. However, with the growth of circular thinking, IH may have potential to further develop. The findings show that sustainability is overall present in the development of IH within MSHT, where the companies show a homogenous picture with varying challenges and contribute to sustainable transition. Regarding circular construction, the study shows potential in additional steps needed from a life-cycle perspective. © 2021 Proceedings of the 37th Annual ARCOM Conference, ARCOM 2021. All Rights Reserved.