The majority of small to medium residential dwellings in New Zealand are constructed using tim -ber, which makes up over 90% of the market share of structural materials in construction. Over the last decade, attention has been scoped to new construction techniques such as cold-formed steel homes, concrete masonry with insulating fillers, and, more recently, precast concrete homes. Despite progress made in recent times, New Zealand homes are still classified as being cold and inefficient in terms of thermal performance when compared to other countries experi-encing similar climate. The minimum insulation requirement has increased to more stringent lev -els for residential dwellings towards thermally efficient houses across the six (6) climate regions in New Zealand. The national goal aims to achieve energy-efficient homes to meet the net-zero carbon goal in New Zealand. This paper presents a systematic literature review of different con-struction materials thermal performance used in residential homes to assess their potential in New Zealand's industry. The materials reviewed include timber, cold-formed steel, concrete, bricks, phase change materials, and novel systems. The review of over 190 journal papers has in-dicated that New Zealand has yet to adopt recent technologies, such as concrete for typical con-struction materials, phase change material for new materials, and thermally activated building systems for new systems. Composite materials are also the subject of ongoing research, showing great potential for thermal performance when used in insulation products. Most of the reviewed papers used thermal modelling instead of experimental testing, which strengthens confidence in using thermal computer modelling as an evaluation tool. The paper summarizes conclusive points in the reviewed literature and their applicability to the New Zealand construction industry.