As a result, there is limited housing, office or factory space available that fully meets western standards. Almost all buildings rely on the central heating and hot water system and decreasingly suffer periodic power, telephone, hot water and heating outages, especially during the peak demand season in the winter. Power cuts of some hours are not unusual during this time. Services are continuously being improved and are expected to be up to western standards soon. New construction projects dot the landscape of Ulaanbaatar and many other buildings are currently receiving upgrades.
Demand still outstrips supply.
Due to shortages of capital and material, this sector is only operating between 10 and 40 percent of capacity. With the majority of the population under 25 years old, the need for residential units will continue to grow. Further, the urban water and sewage systems need to be upgraded. Housing and office space is available for rent, generally as units within apartment buildings. Apartments are Soviet-style, with one to three rooms and up to two bedrooms.