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The application of eco‐design principles in the building sector is considered a promising way to mitigate its substantial environmental impacts. However, quantitative evidence for this mitigation potential is lacking. The objective of this study was to quantify the environmental performance of diverse eco‐design strategies when applied to the building sector. A macroscale model capable of simulating the future demand for housing and related material flows within the urban building stock was developed based on an existing building stock model. These material flows were used to build inventories for a consequential life cycle assessment and, in turn, to quantify the potential environmental consequences of introducing eco‐design strategies in the building sector, assessed across 16 impact categories. Model outputs have a high level of uncertainty but are still useful for decision‐making, given the model's simplicity and transparency. The main results show that impact reductions can be obtained from specific uses of wood and wooden products, for example, when used for the walls in high‐rise buildings, whereas using hempcrete for partition walls increases the impact. Although the use of adaptability or disassembly strategies can reduce impacts, this pay‐off can only be obtained after a long period of implementation. In summary, the present study provides new quantitative insights into the ability of eco‐design strategies to mitigate environmental impacts in the building sector. [ABSTRACT FROM AUTHOR]