The building construction industry is an old industry with entrenched behaviors and interaction patterns. The European Union (EU) published a study analyzing these behaviors and measuring the application of circular economy to the construction industry in June 2023. This study included a diagram describing the construction industry as a system, but it did not include all elements or fully analyze the system. The discipline of systems thinking is a dynamic analysis that integrates societal forces with industry dynamics to provide a comprehensive description of behaviors within an industry. This study builds on the EU report and creates a causal loop diagram for the construction industry that includes societal and industrial environmental elements. This diagram is analyzed to identify the reinforcing and balancing loops that explain dynamic system behavior and sources of resistance to change. In addition, potentially dysfunctional elements of the system are identified. The study also assesses the recommended changes from the EU report to determine their likely impact on system performance and identifies additional leverage points that should be considered.