Addressing Mongolia’s Housing Challenges with Green, Inclusive Urban Development

The World Bank and Mongolia’s Ministry of Urban Development propose sustainable housing solutions for ger areas, focusing on retrofits, diverse housing typologies, and gradual densification to improve livability, resilience, and inclusivity. These strategies aim to bridge the housing gap, reduce pollution, and promote economic equity.

The World Bank, in partnership with Mongolia’s Ministry of Urban Development, Construction, and Housing, has conducted a groundbreaking study to address the escalating housing crisis in Mongolia’s urban areas. These challenges are especially pronounced in ger districts, informal settlements that house 60% of the urban population. These areas suffer from substandard housing, lack of basic infrastructure, and environmental degradation. The study offers innovative strategies to bridge the gap between informal ger housing and high-cost high-rise apartments, proposing a mix of retrofitting, sustainable new construction, and inclusive policy reforms. This comprehensive approach aims to improve the quality of life for ger residents while supporting sustainable urban growth.

Transforming Ger Areas with Resilient Homes

Mongolia’s housing landscape is defined by stark contrasts. While high-rise developments cater to a small wealthy demographic, ger areas lack essential services like heating, water, and sanitation. The study identifies retrofitting as a critical solution for improving these homes, many of which are vulnerable to natural disasters such as earthquakes. Strengthening structural elements like walls and roofs can mitigate risks while adding insulation can improve thermal efficiency. These upgrades not only make homes safer and more comfortable but also enable residents to obtain property certificates, unlocking access to financial services like loans and mortgages. The process of formalizing property rights through upgrades can help residents build wealth and strengthen the financial resilience of ger communities.

Promoting Energy Efficiency and Environmental Health

Coal-based heating in ger districts is a major contributor to Mongolia’s severe winter air pollution, which poses significant health risks and economic costs. The report emphasizes the need for energy-efficient retrofits, such as improved insulation and alternative heating systems. Projects like the Switch-Off Air Pollution initiative have demonstrated the transformative potential of these measures, reducing greenhouse gas emissions and improving indoor air quality. Transitioning households to district heating systems or adopting renewable energy sources like heat pumps can further alleviate pollution while lowering energy costs. These initiatives not only address environmental concerns but also contribute to healthier, more livable urban spaces.

Introducing Diverse Housing Typologies

To address the diverse needs of urban residents, the study proposes the development of new housing typologies tailored to local preferences. These include single-family detached houses, duplexes, shophouses, and low-rise apartments. Designed to incorporate modern construction standards and energy-efficient materials, these homes provide affordable and resilient housing options. For instance, shophouses combine residential and commercial spaces, supporting local businesses and generating income. By investing slightly more than the cost of a traditional ger home, families can transition to durable, well-designed residences with higher market value. These new typologies are envisioned to fill the "missing middle" in Mongolia’s housing market, offering a sustainable alternative to informal housing and expensive high-rises.

Gradual Densification for Sustainable Growth

Gradual densification emerges as a sustainable solution to Mongolia’s urban housing crisis. Unlike rapid high-rise developments, this approach preserves community structures while optimizing existing infrastructure. By incorporating medium-density housing like townhouses and mixed-use developments, municipalities can increase the housing stock and enhance neighborhood livability. Case studies from Darkhan and Erdenet highlight the potential of densification projects. For example, targeted interventions in areas with existing infrastructure can revitalize underutilized resources, create vibrant communities, and boost local economies. The study underscores the importance of community engagement and participatory planning in ensuring the success of these initiatives.

Addressing Financial Barriers with Inclusive Policies

One of the critical barriers to housing improvement in ger areas is the lack of financial accessibility. Existing mortgage programs often exclude ger residents, who struggle to meet stringent down-payment requirements or offer acceptable collateral. The study advocates for policy reforms to expand access to housing finance, including microloans for retrofits and tailored mortgage products for middle-income families. By creating inclusive financial systems, Mongolia can empower more households to invest in resilient, energy-efficient housing. The proposed BestGER certification system will also play a key role in promoting sustainable building practices, ensuring that new housing meets green and resilient standards while increasing its market value.

Envisioning a Sustainable Urban Future

Through a combination of retrofitting, innovative housing designs, gradual densification, and inclusive financial policies, the study provides a roadmap for transforming Mongolia’s urban housing landscape. These solutions address the immediate needs of ger residents while laying the groundwork for long-term sustainability. Investments in green infrastructure, energy efficiency, and community-driven planning are central to this vision. By leveraging local resources and fostering innovation, Mongolia can turn its housing challenges into opportunities for economic growth, social equity, and environmental resilience. The report emphasizes that with targeted interventions and committed policymaking, Mongolia can build livable, sustainable cities that reflect its rich cultural heritage and meet the needs of a modern urban population.