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This article investigates the housing process of ethnic minorities in Hong Kong. The study is an attempt to explain how these minority ethnic groups are filtered and trapped in the private rented housing sector in inner city enclaves. Focus group and in-depth interviews are used to study the low-income Pakistani and Nepalese migrants in two districts in Hong Kong. Affordability, discrimination and locational consideration draw the Pakistani and Nepalese families towards the private rented sector in tenement slums. A model of enclave tenement trap is built based on empirical research conducted in Hong Kong. The model and findings provide directions for civil society institutions and housing policy.