Utilizing solid waste biomass developing of construction materials presents an environmental mitigation opportunity by gradually replacing conventional materials that generate diverse ecological impacts. This approach aligns with circular economy and green chemistry principles, promoting the creation of sustainable materials. This research analyzes the use of brown algae from the Sargassum genus for bioconstruction applications through its mix with Portland cement. The mass influx of pelagic Sargassum species onto Caribbean beaches since 2011 has significantly impacted the environment, economy, and human health. The valorization of Sargassum is crucial for effective management and impact reduction. The study encompasses four key stages: (a) collection and processing of the algae, (b) development of a construction material composed of Portland cement and Sargassum at concentrations of 5 wt.% and 7.5 wt.%, (c) multifunctional characterization of the composite material, encompassing physical chemistry and thermal, optical and mechanical properties, and (d) an economic-environmental evaluation of using the construction material for housing in the Mexican Caribbean to enhance thermal insulation and reduce electric energy consumption associated with air conditioning. Test specimens of the composite material reveal compressive strength ranging between 78 and 347 kg/cm2, solar spectrum absorbance between 54% and 70%, and thermal conductivity between 0.65 and 1 W/mK. The economic-environmental analysis indicates that employing the construction material in 5% of households in the state of Quintana Roo, Mexico, could lead to annual reductions in energy consumption of approximately 67 GWh, with savings exceeding US$33,000, and environmental yearly mitigation equivalent to 4.1 TnNOx, 5.2 TnCH4, and 33,262 TnCO2. These results suggest promising prospects for incorporating Sargassum into construction materials, offering potential environmental and economic benefits. The composite material demonstrates optical, thermal, and mechanical functionality.