This paper describes the recent changes in housing in Prague, capital of the Czech Republic. It focuses on the three main restructuring processes, restitution, privatisation and rent deregulation. The outcome of these processes is analysed in the light of so-called 'gap theory' as developed by Neil Smith, Eric Clark and others. This theory is subjected to some minor adaptations and extensions for the sake of a better understanding of the specific Prague context. Moreover, the contemporary trends are more or less speculatively extrapolated into the future, in order to draw attention to the challenges for the housing sector in transforming a post-Communist capital.