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Building construction accounts for a significant proportion of global greenhouse gas emissions, raw material extraction, and waste production. Applying circular economy (CE) principles in the building construction industry would considerably reduce these values. However, uptake by the industry is relatively slow, which is largely attributed to sectoral barriers, including limitations in knowledge and experience. This review paper aims to assess and contribute to diminishing these obstacles by offering a comprehensive review of circular material usage principles and strategies within the construction sector. Opportunities and facilitators of change are also presented, including innovations and emerging technologies in recycling, digitization, robotic systems, novel materials, and processing. Finally, four case studies demonstrate the application of circular theory via a novel block system, recycled aggregate, modular kitchen reuse, and an energy efficiency retrofit. The conclusions show that future efforts should prioritize the development of strong regulatory frameworks, awareness initiatives, and international cooperation. In this regard, the integration of technological advancements, such as AI, robotics, and blockchain, is essential for optimizing waste management efficiency. Furthermore, education on circular practices plays a critical role. Through global collaboration, standardizing circular construction approaches can promote a more sustainable and resilient building construction industry.