Traditionally, cities have been viewed as centers of production with their survival dependenton the presence of firms. However, the role of cities has changed over time. Since the 20th century, cities have evolved into centers of consumption, relying on individuals and households for economic activity. Therefore, understanding what attracts economic activity to locations has become a focus of urban and regional economics. The purpose of this study was to evaluate therelationship between housing prices and the quality of life of 241 Swedish municipalities, while assessing the capability of utilizing a citizen survey as a measure of quality of life. This study was based on the theory of spatial equilibrium, and a hedonic pricing method was followed to understand what influences the location decisions of individuals. The findings indicate thathigher quality of life is associated with a positive implicit value in housing prices, with increased safety and accessibility having strong effects. With advancements in survey and estimation methods, further research can offer valuable insights for researchers and policymakers seeking to understand consumer preferences and adapt urban environments to attract economic activity.