Construction and demolition (C&D) waste is Australia’s largest waste stream, generating over 29 million tonnes annually, with demolition waste accounting for a significant portion of the same. Within this, residential demolition activities produce high volumes of mixed materials that remain poorly characterised. This paper analyses the literature critically, examining how previous studies have captured, quantified, and managed demolition waste flows, forming the foundation for a new mapping methodology in Victoria. Existing research has primarily employed Material Flow Analysis (MFA), Life Cycle Assessment (LCA), and Building Information Modelling (BIM) to trace C&D material movements. While these approaches provide useful macro-level insights, they often fail to represent the full demolition waste lifecycle and its site-specific variability. This review identifies nine lifecycle stages, from generation, sorting, storage, collection, transport, reuse, recycling, and energy recovery to final disposal and evaluates existing quantification methods including generation rate calculations, permit-based estimation, and GIS-based spatial modelling. Findings reveal fragmented data systems, inconsistent definitions of demolition versus broader C&D waste, and limited quantification of material losses between lifecycle stages. Few studies integrate qualitative insights from demolition contractors or recovery facility operators. Current recovery strategies predominantly focus on recycling, with less attention given to upstream actions such as selective demolition, material reuse, or upcycling. This paper highlights key methodological and policy gaps constraining Victoria’s transition toward circular demolition practices. It concludes by outlining a conceptual direction for a Demolition Material Flow Mapping Framework to integrate qualitative stakeholder data with quantitative estimation, supporting circular economy strategies and enhancing resource recovery in Victoria’s residential sector.