The base of the economic of city, whose center was a steeply sloping market square with houses, protected by a three-portal wall, was the trade, the agriculture mostly used in the secondary trade and the mining industry beginning around 1450.

The award of the city rights takes place step by step from 1374 onwards, Lauenstein has the right to hold a weekly market. From 1489 the citizens are allowed to vote for a council and mayor. In 1494, Lauenstein is granted full municipal rights by the lords.