Hong Kong is a typical example of a world city that faces escalating poverty and housing problems. Problems related to housing are crucial in determining deprivation. By means of hierarchical linear regression on a representative survey of Hong Kong residents in 2014, this study examines the impacts of household income and housing factors on the deprivation of residents in Hong Kong. The study indicates that income level has a crucial effect on the deprivation level of households; whereas housing cost per capita, living area per capita, and living quarter problems significantly influence deprivation. A small interacting effect exists between household income and housing factors, which do not influence the independent effects of living area per capita and living quarter problems on deprivation. For the public rental housing residents, only the effect of living quarter problem on deprivation is significant, whereas for private rental housing residents, living area per capita and living quarter problem have a significant effect. Among all the models, housing expense per capita is a significant factor only in model for overcrowded households. The study recommends that improving the maintenance and renovation schemes for public and private housing with poor living environment is a good strategy to improve housing conditions and deprivation. The study suggests that anti‐poverty policies must consider strategies and measures that can improve the housing factors, including housing expenses, living density and living quarter maintenance problems, especially for those residents with high living density, such as those living in bed spaces, cubicles, and subdivided flats.