The article deals with the process of housing privatization and urban revitalization in the transformation of Central European cities. Reforms require extensive privatization of firms as well as land and housing. The process of housing privatization includes changes in ownership, management of the housing stock and a new system of housing finances, which will affect new construction, modernization and rehabilitation of the existing stock and can lead to social and physical changes in cities. The question is whether housing privatization in Central European cities will lead to better chances for rehabilitation or just the opposite.