Abstract Privately organized collective housing is currently included in agendas for sustainable urban development in a range of European cities as a resource-efficient form of housing that prevents isolation and contributes to social cohesion within urban communities. However, research has shown that the recent surge of different forms of private-collective housing in Berlin could be a driver of gentrification and segregation. This article aims to uncover potential causes of the discrepancies between the ideological, and at times utopian, motivations underpinning self-build housing projects in the former East Berlin district Prenzlauer Berg, and their actual outcomes. I do so by analysing the literary (counter) discourse on self-build groups developed in Anke Stelling’s novels Bodentiefe Fenster Floor-Length Windows (2015) and Schäfchen im Trockenen (2018, published in English translation as Higher Ground in 2021). I show that the realization of socially progressive, or even utopian, plans for urban private-collective housing prove difficult, and sometimes impossible, for the characters in the novels, due to the influence of other societal structures such as gender and class inequalities, urban segregation and gentrification, discrimination and the neoliberal logic of individual competition and consumption.