Carbon emission reduction in the construction industry is crucial for promoting low-carbon transformation of the industry and for realizing the carbon peaking and carbon neutrality goals. This study analyzes the current status of carbon emissions in Chinese construction industry. It identifies that the production of building materials and the operation of buildings are the primary sources of carbon emissions in the overall construction process. Moreover, the growth rate of carbon emissions from the construction industry in China is decelerating, and the spatial characteristics of carbon emissions demonstrate an increase from the south to the north and from the west to the east. We have identified six key challenges that must be addressed to achieve carbon peaking and carbon neutrality in the construction industry of China: policy and standards framework, energy-efficient and carbon-reducing technologies, reduction of carbon emissions from existing buildings, carbon emission data collection and monitoring systems, green financial system, and increased awareness of carbon reduction. Staged goals for the low-carbon development of the construction industry are also proposed. Furthermore, we suggest improving related policies and standards system, optimizing the use of energy-saving technologies, reducing carbon emissions in existing buildings, developing green finance, improving the ability to monitor carbon emissions, and enhancing the awareness of energy conservation and carbon reduction, so as to provide references for the low-carbon transformation and high-quality development of China's construction industry.