Although migration is an individual decision, it is a process involving crossing borders and involves state-led institutions. In the case of Hong Kong, Kennedy et al. (Asian Journal of Social Science, 47, 534–565, 2019) identify two types of institutions in Hong Kong: formal and informal. Formal institutions include legal and regulatory frameworks that govern political processes, public services, private organizations, and markets. Informal institutions include the ‘unofficial’ structures that govern relationships within organizations, such as bureaucracies, firms, or industries, as well as everyday cultural practices, value systems, and observed norms of behavior in households or among social groups or communities (Alsop et al., Empowerment in practice from analysis to implementation, 2006). Refugees and asylum seekers interact with these institutions on a day-to-day basis. The dynamics governing this relationship influence this group’s well-being, behavior, and adjustment to the requirements of sustainable urban development. Therefore, this chapter reviews how formal and informal institutions prevalent in refugees’ lives influence their well-being to generate a response that addresses their needs. The first part of this chapter reviews well-being by focusing on resources and capability approaches. The second section reviews the formal and informal institutions influencing refugee resource allocation. By focusing on opportunity structures and agency, the chapter argues that this group needs to be empowered through education and employment.