Wooden houses burn easily.

Literal

Wood-built houses [topic-は] burn-easy.

木造 ('wood-built, of wood-construction') is a Sino-Japanese compound combining 木 ('wood') + 造 ('build') — a useful word that comes up in contexts from real estate to architecture. ~やすい forms the easy/prone-to-X adjective from the verb stem 燃え-. The same idea also surfaces with adverbial 簡単に ('easily') or with the collocation 火がつきやすい ('catches fire easily') for the same kind of statement about flammability.