Faced with increased waves of refugees, economic migrants and internal vulnerable groups, the challenge for the contemporary European city is to welcome, assist and manage these populations in ways capable of fostering a positive and productive articulation of difference. The paper tackles this issue by investigating the ways in which difference is perceived, negotiated and performed among Italian and migrant homeless people in Turin, Italy. Through the presentation of detailed ethnographic material, the paper proposes a processual and affective take on the everyday assemblage of race and it questions the role of normative spaces in its making. The notion of racialised dissatisfaction is advanced in this sense, signalling how street‐level racism among the homeless poor is deeply connected to the broader machinery of homelessness management and the material and affective components of life on the street. Despite its contextualised ethnographic nature, the paper offers insights that encompass the analysed case and advance our theoretical and empirical understanding of everyday life at the urban margins.