Housing reconstruction is considered the backbone of disaster recovery. The increasing losses in housing due to disasters challenge conventional top-down schemes and call for people-centred approaches to acknowledge their agency and self-recovery resources. This paper examines the pathways for housing self-recovery through resident-controlled incremental housing development. This paper focuses on the Villa Verde settlement built in the Chilean city of Constitución, which was severely impacted by the 2010 Chile Earthquake. Villa Verde, designed by the Chilean architecture studio Elemental, is one of the most notable incremental housing projects worldwide that encourage residents to extend their houses within a provided structural framework. This research aims to provide clarity in the much-needed understanding of disaster-affected people’s agency to self-recover, noted by researchers as one of the crucial elements for improving the humanitarian response in the aftermath of disasters. Through capturing the evolution of incremental housing construction, this paper presents multiple complexities resulting from the variety of households’ characteristics and needs in their process of post-disaster housing self-recovery. The resident-controlled process studied evidence that the people’s capacities and dedication to self-recover challenged the established housing framework with extensions beyond the designers’ parameters requiring further evaluation of the long-term implications of self-help constructions.