Should You Rent or Buy in Ulaanbaatar?

Mongolia's housing market operates in a world of extremes. Apartment prices in Ulaanbaatar have surged 80% since 2018, reaching ₮5,030,000 per square meter for new builds — meaning a 50sqm one-bedroom costs ₮250 million. Commercial mortgage rates sit at 17% — among the highest in Asia. But the government's subsidized program offers 6%, creating a two-tier market where access to cheap credit determines whether buying is genius or financial suicide.

The calculator reveals a hidden truth about Mongolian housing: at commercial rates (17%), buying almost never makes financial sense for stays under 15 years. But at the subsidized 6% rate, the breakeven point drops to 5-7 years — making homeownership viable for young families who can access the program. The gap between these two realities is the gap between Mongolia's housing haves and have-nots.

For a generation of Mongolians, the rent-vs-buy decision is not really a choice at all. Without access to subsidized mortgage programs, the math points overwhelmingly to renting — or to the traditional alternative that no Western housing calculator accounts for: the ger. At ₮15-30 million for a ger and plot in the city outskirts, it remains the only path to 'ownership' for many families. But that path comes with its own costs: no central heating, longer commutes, and the air pollution that defines Ulaanbaatar's winters.