It's not that black and white. CLT is more of a group of materials with different characteristics than a single thing. Fire rated versions of it exist and are c

It's not that black and white. CLT is more of a group of materials with different characteristics than a single thing. Fire rated versions of it exist and are commonly used depending on the requirements and building codes. This article has a nice overview: https://constructionexec.com/article/fire-safety-of-clt-and-mass-timber-buildings https://constructionexec.com/article/fire-safety-of-clt-and-... Using cheaper materials for low rise might indeed be an issue. Also, living in houses that are mostly low quality plywood and other flammable materials is of course not great for fire safety. It's a tradeoff between cost, requirements, and regulations. Even concrete buildings sometimes collapse when fire gets hot enough. Metal loses its strength when it gets warm enough. The collapse of the Twin Towers in New York are a pretty grim example of that.