How much it costs to live in Australia’s happiest city

A recent global city ranking featured Copenhagen, Helsinki, Tokyo, Munich, and Barcelona – and then one Australian city you probably wouldn’t expect.

The regional Victorian city of Ballarat ranked 16th on last month’s Happy City Index for 2026, which ordered 250 cities worldwide to highlight places that combine quality of life, sustainability, good governance and resilience.

Ballarat was the highest-ranked Australian city, followed by Adelaide (71), Melbourne (108), Geelong (122), Hobart (132) and Rockhampton (168).

The list is compiled using 64 indicators by the Institute for Quality of Life across the six themes of governance, health, economy, mobility, environment and citizens. It considers everything from the unemployment rate and paid parental leave offerings to life expectancy, green space, public transport, air pollution, higher education accessibility, number of libraries and housing affordability.

So, how much does it cost to live in the city that sparked the Victorian gold rush in 1851 and is now deemed Australia’s happiest place?

The median house price in the Ballarat local government area is $600,000, Domain data for the March quarter shows, up 15.4 per cent in the past 12 months.

Some suburbs are more expensive. West of Ballarat’s CBD, in the suburb of Alfredton, the median house price is $630,000, while Ballarat Central is at $643,000 and Mount Helen is at $722,500.

On the flip side, the suburbs of Delacombe, Mount Pleasant and Wendouree were all more affordable, with medians of $571,500, $510,000, and $510,000, respectively.

Will Munro, director of Ray White Ballarat, said while there are many factors that make Ballarat a happy city to live in, one of the most important is that “it caters for absolutely every stage of life.”

Heritage homes

Given its history, Ballarat has a range of period homes and miners’ cottages in the CBD and inner suburbs.

Brooke Reynolds, partner and sales consultant at Jellis Craig Ballarat, said one of these in Ballarat East, where the median house price is $537,000, recently sold for $700,000.

“The property attracted 45 groups at its first open inspection, received eight offers and sold within the first week,” she said.

Tony Zelencich, a sales consultant at McGrath Ballarat, also noticed strong demand for these housing types.

“We’ve seen a number of standout results recently, particularly with well-renovated period homes that blend heritage charm with modern updates,” he said.

“These tend to attract strong competition and emotional buying.”

An example of this was a Mount Clear home that sold for $650,000 – over $100,000 above the suburb’s median – without going to market.

Architecturally designed homes

Architecturally designed or renovated homes often cost more than the median house price, said Jayden Dyer, property consultant from Fletchers Real Estate Ballarat.

“An architecturally designed home in Ballarat would cost around $950,000-plus,” he said.

An Elderidge Anderson Architects-designed home, well above the Ballarat median, is currently on the market for $2 million to $2.1 million at 5 Palentino Place in Brown Hill.

For families

Munro said families are attracted to Ballarat for amenities including schooling and healthcare, and its proximity to Melbourne.

“Families love buying a home on a large block for their kids, which also provides access to great schools and a variety of sporting opportunities,” he said.

“Miners Rest has very easy access to the Western Highway to Melbourne and is also very close to the Stockland Wendouree shopping centre. Great value for families or young couples.”

One four-bedroom family home on a 665-square-metre block in Miners Rest recently sold for $615,000.

First home buyers

Zelencich said Ballarat’s affordability made it attractive to first-time buyers.

“Buyer demand has certainly increased, and a lot of that comes down to value for money,” he said.

“Compared to metropolitan markets, Ballarat offers a more accessible entry point without sacrificing lifestyle.”

A starter home, Zelencich said, would cost $400,000 to $550,000.

Investment properties

In addition to first home buyers, Reynolds noted significant interest from investors over the past six months.

“The most in-demand properties are low-maintenance, ‘set and forget’ brick homes, typically priced between $450,000 and $650,000, mostly due to their affordability and solid rental returns,” she said.

The suburbs of Sebastopol and Wendouree experienced heightened demand, especially among investors.

“These areas are characterised by well-built homes from the 1970s and 1980s — typically solid-brick properties that are practical, low-maintenance and appealing as investment options with reliable rental returns,” Reynolds said.

Lifestyle property and larger family homes

Agents have observed demand for larger lifestyle properties.

“Properties with development potential or large land components have also performed exceptionally well, especially with investors recognising the long-term upside,” Zelencich said, adding they vary in price but often cost $850,000 to $1.2 million-plus.

He said families were behind the high demand.

“As block sizes in new developments continue to shrink, buyers are increasingly drawn to areas where they can secure a generous yard, room for families, and space for pets, all of which these suburbs provide at a relatively accessible price point.”