Yes, these wasps build their home from paper that they make themselves!
Paper wasps use material from dead wood and plants. They mix it with their saliva to make the grey or brown papery material. This material is also water proof. The nests also contain pockets of air in between to maintain a comfortable temperature inside.
The open comb with holes or hexagonal (shape with 6 sides) cells are used to bring up its young. The wasp spreads a repellant at the place w here the nest is attached to wires, fences or buildings, to keep away predators (hunter) such as ants.
- http://en.wikipedia.org/wiki/Paper_wasp : Wiki page on Paper wasps
- http://www.wildwanderer.com/journal/insect-architects.html : A naturalists information about them