The purpose of investigating livelihood strategies is to seek patterns that can be acted upon in order to improve livelihood prospects. This paper assesses household livelihood strategies and their determinates by asking (1) how urban households manage and mobilise resources and (2) how they combine assets—emphasising the existing strategies they adopt and their outcomes. Using a mixed-method cross-sectional design, four informal settlements were surveyed. Household questionnaires were developed and used to collect data from 425 households in Calabar, Nigeria. A total of 45 interviews, non-participant observation, and 2 focus groups were conducted. Quantitative data were analysed using the Statistical Package for Social Science (SPSS version 26, IBM, Armonk, NY, USA) and presented using tables. The qualitative data were collected, coded and analysed using NVivo 1.2 (QRS International). Fundamental context-related livelihood strategies in asset building are identified, and the diverse approaches and constraints that emerged are analysed. The result shows that households diversify their assets with strategies which are complex and diverse. This ranges from the extension of spaces and sub-letting a room to reducing their expenses (by spending less), borrowing from friends and relatives, and seeking help from community organisations. Others include pawning their belongings, engaging in home-based enterprises, and investing in children’s education, migration, and urban agriculture. Findings further indicate the ability of households to avoid or reduce their vulnerability and to increase their productivity depends on their initial assets and on their ability to transform them into income, food, or other necessities. This paper recommends ways of strengthening and supporting households’ strategies to cope with and reduce housing vulnerability.