This study is intended to analyze housing, communities, and related public policies in Ulaanbaatar, Mongolia along with a citizen questionnaire survey. New policy directions on housing and communities were to be established based on the results of the study. According to the survey, Mongolian citizens wanted the government to be more active in resolving air pollution and traffic congestion. Also, citizens wanted the government to invest more in low-cost housing and give more attention to building material industries. Citizens were upgrading their housing quality with growing satisfaction with their housing. However, in the neighborhoods where satisfaction levels tended to decrease, the reasons were because of transportation problems, lack of infrastructure, and unsafe features of the neighborhood. Another large problem in Ulaanbaatar is that the ger areas are spreading out too much. To upgrade the squatter areas, the Mongolian government frequently implements urban redevelopment projects, characterized by the demolition and construction of high-rise buildings. This study recommends a site-upgrading strategy implemented through self-help efforts, which impose a smaller burden on the poor in most cases, except in some downtown development areas. It also recommends that the city adopt the “compact city” concept, which should prevent too much urban sprawl.