While Hong Kong is an extremely wealthy city where one in seven residents is a millionaire, the city also has one of the most unaffordable housing markets in the world. This policy review examines how the development of various housing policies since the 1950s have contributed to segregation and housing inequality. After exploring various aspects of Hong Kong’s housing market, we introduce a typology of segregation, the study of which would allow a deeper understanding of the current housing situation. Building on the existing studies of micro-segregation and our recent observation, we further introduce the concept of nano-segregation. Micro- and nano-segregations take place in Hong Kong both horizontally and vertically. They manifest the severe socio-spatial inequalities that result from the aspirations expressed in the policies, and from the benefits to individuals who have gained from the changes.