With the rapid development of engineering construction in China, especially the emergence of large-scale engineering projects and self-built residential houses, ethical issues in engineering have become increasingly prominent. Engineering ethics encompass the moral issues within engineering practice. Currently, engineering ethics in China is in its early stages, due to a lack of practical experience and a comprehensive set of ethical norms and operational systems. To effectively prevent and control safety issues in self-built housing projects, and to avoid accidents, this paper firstly focuses on the causes of the collapse of self-built houses in Changsha on 29 April 2022, from the perspective of engineering ethics. By utilizing the meanings and relevant theories of engineering ethics, this paper analyzes the three ethical dilemmas involved in the collapse of self-built houses: the ethical dilemma faced by engineers, the dilemma of government credibility, and the dilemma of engineering ethics education. Subsequently, recommendations are proposed to address these dilemmas, focusing on enhancing engineers’ ethical perspectives, improving government credibility, and strengthening engineering ethics education. Finally, an analysis and decision-making model is constructed based on the Civil Code of the People’s Republic of China. The research findings of this paper have certain reference significance for ensuring the safety of residential buildings, which can effectively motivate governments, owners, designers, constructors, managers, and users to actively develop and promote high-quality sustainable buildings.