Background Ecological housing concentrates on minimising energy consumption and has reached ‘low energy’, ‘zero energy’ and even ‘plus energy’ levels. However, neither the ecological nor the socioeconomic impacts of construction materials, including insulation, or the ‘end-of-life’ phase have received sufficient attention. Furthermore, electricity consumption has not yet been adequately included in the design of buildings. Objectives The overall objective of the LIFE Cycle Habitation project is to demonstrate innovative building concepts that significantly reduce CO2 emissions and contain a minimum of grey energy over their entire lifecycle. The ultimate goal is to design and build prototypes for carbon-neutral and ‘LIFE cycle’-oriented residential buildings, and to make energy-efficient settlements the standard, in line with EU 2020 objectives. To this end, an energy-efficient compound, consisting of six residential units and a community centre, will be built in Traismauer, Lower Austria. These buildings will incorporate straw bales and be of different innovative construction types. They will utilise a highly innovative, energy-supply system. The aim is for renewable resources to be used to generate thermal energy and also additional electrical energy. This represents a milestone in sustainable building, with a great potential for replication and up-scaling. Expected results: A compound of buildings, with innovative concepts and technologies, which will be carbon neutral over its entire lifecycle; A central prototype building in the compound, containing a community centre with a highly innovative, energy-supply system for household appliances, therefore minimising electricity consumption by 80%; Prototype living units that demonstrate the compatibility of energy-efficient compacted flat-roofed buildings; Minimum grey energy input, by using sustainable building materials (e.g. straw bales); and Highly innovative energy-supply system, with renewable resources generating thermal energy and additional electrical energy.