Wikihouse is a frugal innovation concept developed in the Netherlands to create affordable, sustainable housing. This literature review set out to determine the benefits of the Wikihouse concept and assess its sustainability. In this review, the literature about Wikihouse was considered. The results show that sustainability is an inherent part of the Wikihouse concept, and this can be seen in the discussed benefits. Wikihouse uses timber, which has significant environmental benefits. Another benefit is that distributed manufacturing allows for global networking and knowledge sharing while creating business for local suppliers and producers, reducing production costs and time. Lastly, modular prefabricated aspects of the Wikihouse ensure quicker construction times and minimise construction noise and waste. The Wikihouse concept can become a valuable tool for solving housing supply challenges.