Fiberboard is a cement, fiber mixture that can be nailed into and cut just like wood, but it doesn't rot and termites don't eat it. It can get a little moldy, but all you have to do is get a hose and rinse it down.

Around here I've seen very few houses not using Hardy Plank (which is a particular brand of fiberboard), but it might be different where you are. Note that this is just for the outside paneling of the house, though. For the rest of the structure you'd expect regular old wood.