Canadians Pay High Prices for Happiness in Major Cities

A recent analysis reveals the financial impact of living in Canada’s happiest cities, highlighting a stark contrast between happiness levels and housing costs. According to a survey conducted by Leger, Canadians rated their overall happiness at an average of 68.7 out of 100. The survey, released in July 2025, indicates that while many Canadians report a sense of well-being, nearly 28 per cent feel less happy compared to the previous year.

The survey ranked happiness levels across major Canadian cities, with only two surpassing the national average. Mississauga, Ontario, emerged as the top city with a happiness score of 70.3, followed by Montreal at 69.4 and Hamilton, Ontario, at 67.5. Calgary took fourth place with a score of 67.4, while Vancouver and Toronto lagged behind, scoring 66.3 and 65.8, respectively.

Housing Prices and Happiness Correlation

In a follow-up analysis, real estate firm Zoocasa examined how happiness correlates with housing affordability. By comparing Leger’s findings with data from the Canadian Real Estate Association (CREA) and the Toronto Regional Real Estate Board (TRREB), Zoocasa calculated a “price per happiness point.”

Their findings reveal that achieving happiness in top-ranking cities comes at a significant cost. In Mississauga, the average home price is approximately $969,501, translating to about $13,788 for every happiness point. This figure is nearly double that of Montreal, where the cost per happiness point is $8,343.

Angela Serednicki, a spokesperson for Zoocasa, noted that the disparity in housing costs becomes more pronounced when factoring in the amenities and job opportunities available in these cities.

The analysis showed a varied range of prices per happiness point across different cities. Winnipeg offers the most affordable happiness at $5,790 per point, while Vancouver sits at the opposite end, with a staggering $17,220 per happiness point.

Western Canada Offers Best Value for Happiness

Interestingly, Western Canadian cities such as Edmonton ($6,289 per point), Calgary ($8,425), and Winnipeg provide a compelling balance of happiness and affordability. This suggests that residents in these areas enjoy a significant “happiness return” on their housing investments, with affordability playing a crucial role in overall satisfaction.

Both Montreal and Calgary manage to maintain their high happiness rankings while offering mid-range home prices. With a cost of approximately $8,000 per happiness point, these cities exemplify how livability and affordability can coexist, providing residents with a sense of well-being without the financial strain prevalent in more expensive urban centres.

Conversely, residents in Vancouver and Toronto face some of the lowest happiness levels despite their vibrant job markets and cultural opportunities. With home prices exceeding $1 million in both cities, residents are paying over $16,000 for each happiness point, illustrating the heavy toll that high housing costs can take on life satisfaction.

The findings from this analysis underscore the complex relationship between happiness and housing affordability in Canada, prompting reflections on how urban living conditions affect overall well-being. With these insights, cities can better understand their residents’ needs and work towards fostering environments that enhance happiness without imposing financial burdens.