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This study examines the relationship between housing quality and individuals’ subjective well‐being. Using data from the China Labor‐force Dynamic Survey (CLDS), results show that housing quality is associated positively with one’s overall happiness. Moreover, the results are robust to potential omitted variable bias. In addition, we determine that housing quality is more correlated with perceived happiness for local residents compared with migrants, who generally have lower levels of happiness. Mechanisms are provided through which the migrant population, which is generally less likely to reside in the current cities, cares less about living conditions than the local population. Policy implications for these findings are discussed.

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