Despite state efforts to enhance affordability, access to adequate housing, deemed a fundamental human right, remains a global challenge. Projections indicate a looming housing deficit affecting 1.6 billion people by 2025, necessitating an integrated approach aligning environmental preservation with housing development. Circular Economy (CE) principles are identified as instrumental in advancing sustainable Social Housing Policies (SHPs). A Systematic Literature Review (SLR) placed best practice documents establishing a positive correlation between CE principles and increased social housing supply. The circularly built environment is recognised for reducing waste, carbon emissions, and resource depletion. However, this research proposes a nuanced perspective, asserting that integrating CE principles addresses housing needs and fosters environmental sustainability, job creation, and economic growth. Crucially, community, government, and the circular economy emerge as pivotal actors in overcoming challenges inherent in SHPs. This study contributes significantly to the discourse on housing policies and sustainability, advocating for an inclusive and environmentally conscious approach to the global housing deficit.