Well, some wood is pretty strong.
There’s more to it: putting structural members “vertically” so that the weight falls on a stronger direction, making sure that support members are close enough together, ensuring that force is directed outward and downward well, etc etc.
But I think that your question is probably best answered by “wood is pretty strong”.
After all, trees are made out of it and some of them are super tall! And the thing restricting tree height isn’t the strength of the wood, but how high the trees can make water go up.
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