Urban buildings consume raw material and energy, and they produce waste and greenhouse gasses. Sustainable urban development strategies aim to reduce these. Using the case study of buildings in Vienna, this article evaluates the impact of a defined urban development pathway on the heating energy demand, greenhouse gas emissions, and total material requirement of buildings in Vienna for 2021–2050. Furthermore, the impact of recycling to reduce the total material requirement and to increase the circular material use rate is evaluated. The results show that the heating energy demand can be reduced to meet the targets of Vienna’s sustainable development strategy. The same does not count for greenhouse gas emissions. To meet the targets for the latter, the renovation of old buildings by thermal insulation should be expanded and heating systems substituted. With respect to the total material requirement, the recycling of demolition waste from buildings in Vienna to produce secondary raw materials for buildings in Vienna can help to achieve the reduction targets of Vienna’s sustainable development strategy so that in the year 2050, the material footprint is only 44% of the value of the year 2019. Since there is a contradiction between the total material requirement and the circular material use rate, the latter has to be discussed for its use as a circular economy indicator, since the aim of circular economy is not to produce as much recycling materials as possible, but to reduce resource consumption to a sustainable level.