In this paper the viability of housing commons as an alternative to commercial and public housing provision is examined. With rising financial burdens for renters in German cities over the past ten years, and state and market failing to provide affordable and accessible housing, claims to (re)communalize and decommodify housing are on the rise. The study is contextualized through tracing changing housing policies post-1945, and historic accounts of housing commons in the German context. Arguing for the advantages of conceptualizing housing as a common good, the applicability, limitations, and contradictions of this approach are explored. Founded in the “new commons” literature, the paper highlights the specific characteristics and challenges of urban housing commons and considers them regarding the complex in(ter)dependencies with market and state. Seven semi-structured interviews with residents of alternative housing projects (based on the principles of decommodification and self-management) and people from supporting organizations were conducted to gain insights into the community. It shows that internal group dynamics, interaction with outside actors on different levels, and the high prerequisites for creating and maintaining housing commons create multiple stress factors, currently preventing the housing commons to unfold their full potential. Mainly the high real estate prices and the consequent need to contribute equity capital prevent the housing commons from becoming a large-scale alternative to other housing providers. The paper stipulates that despite the threat of more rigid regulation, cooperation with the state is a promising way forward for the housing commons to overcome market pressures and provide a much-needed relief to overburdened renters in the German housing market, while simultaneously opening the possibility to “commonalise” the state.