Living in Vancouver comes with plenty of perks — ocean views, mountains, amazing food, and some of the best scenery in Canada.
But there’s one thing many locals know all too well: enjoying the Vancouver lifestyle doesn’t come cheap.
A new study has revealed the income level where money may stop making a major difference in happiness — and Vancouver’s number is one of the highest in the country
RELATED:Vancouver Approves Plans For Western Canada’s Tallest Tower With A Public Observation Deck
The analysis was done by Remitly based on research from Purdue University, examining the link between income and happiness.
It has revealed how much money people need to earn before additional income stops making a major difference in their overall life satisfaction. Researchers refer to this threshold as “income satiation,” which is when earning more money no longer significantly improves how satisfied people feel with their lives.
The figures were developed by analyzing previous research on the relationship between income and happiness. It then adjusts the results to reflect current economic conditions, including inflation, purchasing power, exchange rates, and regional living costs.
So the question is…
How Much Money Do You Need to Make in Vancouver to Be Happy?
The analysis has revealed the annual income Vancouverites have to make to reach peak life satisfaction is $166,982. It ties with the city with Toronto for the second-highest benchmark in Canada.
Although it is not the highest, Victoria holds that honour at $169,951, it is still higher than the national average of about $160,477.56. The study noted that Victoria’s rising living costs have pushed up the income needed for residents to maintain a comfortable standard of living.
On the other side of the ranking, Kingston, Ontario had the lowest happiness threshold among major Canadian cities, with an estimated annual income of $140,513 — even as the city continues to face rising rental costs.
The study highlights the growing financial challenges many Canadians face as everyday expenses continue to rise.
In British Columbia, financial concerns remain widespread. Rising housing costs, higher grocery bills, and the widening gap between wages and the cost of living continue to put pressure on households across the province.
While earning nearly $167,000 a year may represent the point where additional income no longer has a significant impact on happiness in Vancouver, many residents are simply trying to keep up with the city’s rising cost of living.
The Price of Happiness in Canada vs. the Rest of the World
Here’s how Canada’s national income benchmark for happiness compares with other countries. (Note: The figures below are in USD, not CAD.)
Canada’s happiness benchmark is USD $113,755. By comparison, the benchmark is USD $134,827 in the United States, USD $161,302 in Australia, USD $120,248 in the United Kingdom, and USD $71,201 in China. While these figures offer an interesting comparison, it alone doesn’t draw a clear picture.
How Achievable is the Price of Happiness by Country
Researchers also examined how average salaries compare with the income needed to reach the happiness benchmark in countries around the world.
Although Canada’s benchmark is lower than those in the United States, Australia, and the United Kingdom, the average Canadian salary covers only 44.4% of the income needed to reach the happiness threshold.
In comparison, the average salary in the United States covers 55.8% of its happiness benchmark.
European countries dominate the rankings, with Slovenia, Luxembourg, and Estonia taking the top three spots. Slovenia was also the only country where the average annual salary (USD $42,754) exceeds the estimated happiness benchmark (USD $36,769).
Meanwhile, only four Asian countries made the top 50: Singapore (#4), Qatar (#29), South Korea (#33), and Saudi Arabia (#44).
You can see the full report online here.
