The construction sector stands as the predominant consumer of cement, steel, and plastic and is accountable for a substantial 55% of industrial carbon emissions. Greenhouse gases and other forms of pollution linked to the housing sector significantly contribute to the adverse environmental impact of the construction industry. This study underscores the need to incorporate pertinent issues into the Circular Economy (CE) agenda for a lasting and effective mitigation strategy. Through a Systematic Literature Review (SLR), this article explores answers to the research question: “How can the Circular Economy contribute to resolving social housing challenges?” The findings from this comprehensive review highlight that refurbishing the social housing (SH) built environment and formulating public policies targeted at the SH sector emerge as pivotal themes for effective solutions. The principles of the Circular Economy present a sustainable model that can play a crucial role in addressing the social housing challenge. In conclusion, this SLR demonstrates that Circular Economy principles offer a viable approach to tackling the social housing crisis. By embracing these principles, a sustainable model can be established to address the challenges posed by social housing, thereby contributing to the broader goal of environmental conservation in the construction sector.