Access to adequate and affordable housing is a growing challenge in all countries around the world, particularly in Asia. The Asian urban population has increased from 229 million in 1950 to 1.7 billion in 2010; and it is estimated that the number of urban residents in this microregion will reach 3.3 billion in 2050 (Rydin, 2012). Most housing problems in Asia are largely related to affordability- where housing is expensive and household incomes are too low. Although the enabling approach underpins many contemporary Asian housing policies, access to affordable housing for the poorer sections of society is still a big challenge (Bredenoord, Van Lindert, & Smets, 2014). Moreover, low and middle-income households are priced out of land markets in vast majority of Asian cities (UN-HABITAT, 2011). Ulaanbaatar, Mongolia is one of the cities that face the growing challenge of affordable and adequate housing in the face of rapid urbanization. It is estimated that more than 60 percent of Ulaanbaatar’s population lives in informal settlements “with limited access to basic urban services” (Galimbyek, 2015).