Could be an interesting material to macro-scale 3D print.
http://www.treehugger.com/clean-technology/paper-waste-could-be-made-eco-friendly-bricks.html
But how would you bake the building to harden it? You would have to keep prints around the size of a car to fit it into a kiln.
Either that or you design a dismantlable kiln…
Using solar sintering technology is clearly the solution.
With a sintered house, I think the energy used would be a pretty significant cost.