["Environmental Policy and Governance, EarlyView. ", "\nABSTRACT\nThe construction sector is a major contributor to the climate crisis, accounting for over one‐third of global energy‐related CO2 emissions. In response, the European Commission identified the circular economy as a means of achieving green growth and prioritized the construction sector in its Circular Economy Action Plan. Since then, national and local governments have begun developing policy regimes to promote the circular economy in the built environment (CEBE). However, implementation remains limited, and policy coherence—the alignment of objectives and instruments across government levels—is a recognized issue due to the novelty of the circular economy policy regime. This article analyzes how local actors bridge policy gaps in the existing policy regime to enable sustainability transitions through a multi‐case study of two European metropolitan regions in France and the Netherlands that advance the circular built environment. Based on a document analysis and interviews with local stakeholders (n = 20), the study reveals that CEBE policies frequently suffer from low coherence due to incompatible policy mixes. Two dynamics are particularly problematic: layering, where new goals and instruments are introduced without aligning with existing ones, and drift, where new objectives are pursued using outdated instruments. A lack of concrete implementation mechanisms exacerbates low coherence further. Despite these challenges, local actors develop pragmatic strategies to cope with inconsistencies—strategies that are often overlooked. We conclude with recommendations to enhance policy coherence, including incentivizing bio‐based and material reuse, adapting legal frameworks, supporting local pilots, and encouraging bottom‐up approaches.\n"]