Advances in materials science and engineering have played a central role in the development of classical computers, and will undoubtedly be critical in propelling the maturation of quantum information technologies. In approaches to quantum computation based on superconducting circuits, as one goes from bulk materials to functional devices, amorphous insulating films and nonequilibrium excitations-electronic and phononic-are introduced, leading to dissipation and fluctuations that limit the computational power of state-of-the-art qubits and processors. In this Review, the major sources of decoherence in superconducting qubits are identified through an exploration of seminal qubit and resonator experiments. The proposed microscopic mechanisms associated with these imperfections are summarized, and directions for future research are discussed. The trade-offs between simple qubit primitives based on a single Josephson tunnel junction and more complex designs that use additional circuit elements, or new junction modalities, to reduce sensitivity to local noise sources are discussed, particularly in the context of materials optimization strategies for each architecture.