Housing Challenges and Solutions in Mongolia

An estimated 500,000 to 600,000 households in Mongolia are in need of housing. Currently, 32.1% (302,237 households) of the country’s 941,547 households have access to housing with full engineering infrastructure, while 29.7% (279,639 households) live in areas lacking complete infrastructure, and 38.2% (359,671 households) reside in traditional ger dwellings.

 

This data was discussed during a working group meeting of the National Housing Committee, which included representatives from the Ministry of Family, Labour, and Social Protection, the Ministry of Urban Development, Construction, and Housing (MUDCH), the Bank of Mongolia, the Mongolian Mortgage Corporation (MIK), the State Housing Corporation (TOCK), the Mongolian Bankers Association, and other public and private entities.

 

Key points of discussion focused on:

1. Increasing Mortgage Financing: A budget exceeding 1 trillion MNT is planned for mortgage financing in the coming year, with a focus on prioritizing targeted groups.

2. Impact on Housing Prices: Assessing the potential impact of mortgage financing on housing prices and exploring mechanisms to control price inflation, such as introducing long-term rental housing options alongside mortgages.

3. Engaging International Organizations: The working group explored the possibility of involving international organizations to support housing programs, including environmentally friendly, energy-efficient “green” housing financed through international partnerships.

4. Housing for Rural and Government Workers: Beyond the redevelopment of ger districts in Ulaanbaatar, there is also significant demand for affordable housing for rural residents and government employees, with over 90 soums resolving infrastructure issues, although construction activity remains insufficient.

5. Possible Solutions for Housing Market: A proposal from the Mongolian Bankers Association suggested the development of “green” housing, while MUDCH recommended long-term rental options to ease the pressure on the housing market.

 

Since 2013, the Mongolian Mortgage Corporation has provided mortgage loans to 155,000 households, with 30% of them upgrading to larger homes after completing their loans. An international model was also discussed, where housing bought through mortgages can be sold back to state companies, which then resell them to other eligible households. This approach is worth exploring for its potential to ease housing scarcity.

To integrate these ideas into actionable solutions, amendments to relevant laws and regulations will be necessary.