Neighborhoods and neighbors are important sources for people's life chances and well-being. Their importance is highlighted in times of crisis, such as the COVID-19 pandemic: Neighbors helped vulnerable and at-risk groups by providing small services and a sense of community. Using panel data from Switzerland, this study investigated how and for whom relations with neighbors changed to the better or worse during the pandemic. In a second step, changes in subjective well-being and trust in other people, both of which dropped considerably during the pandemic and social confinement, were linked to changes in neighborly relations. The results show that the negative impact of the pandemic on people's subjective well-being and trust was much less pronounced for those who improved their relations with neighbors during the pandemic. At the same time, those with more resources prior to the pandemic were more likely to improve neighborly relations. Consequently, this study finds evidence for a social gradient in subjective well-being and trust during the crisis that partly works through changes in neighborhood networks. Robustness analyses further show that the documented effects are indeed attributable to changes induced by the COVID-19 pandemic and the corresponding social confinement measures.