The following discussion deals with the changes in eastern German cities following the " Wende, "or turning point, in 1989. Residential For the people in the former German Democratic Republic (GDR), the social upheavals in Germany following the Wall Fall (=Wende) in 1989 meant not only a radical break in their everyday lives, their orientations, and their way of life; the changes also had a considerable influence on the development of cities. In view of the increasing differentiation of social structure and housing conditions in the cities of the new L~inder, it can be assumed that residential segregation, that is, a disproportionate distribution of population groups in urban areas, will become a determining structural feature of eastern German cities as well.Our discussion will begin with a brief description of the situation in the GDR in 1989 and of the theoretical principles that guided our study and the methods we used (1). A few central conclusions about the degree of segregation in the city of Magdeburg (2) will precede discussion of selected processes of gentrification (2.1), the downgrading of newer large estates (2.2), and suburbanization (2.3). Finally, we will summarize our conclusions about the interdependence of the three processes (3).Neth.