Vilnius is cheap, safe, and fun — no wonder it's the world's happiness capital for Gen Z

• Lithuania topped the World Happiness Report for people under 30, surprising some locals.
• But many Gen Z Lithuanians agree that its capital, Vilnius, is a great place to live.

When Lithuania topped the World Happiness Report ranking for people under 30 earlier this year, it came as a bit of a shock — even for those who live there.

"It was a surprise," said Valdas Benkuskas, the mayor of its capital, Vilnius, when Business Insider visited in August.

But, he added: "We who are living here, we know what a wonderful city it is."

Vilnius is Lithuania's most vibrant and populous municipality, a Baltic city of thousands of students, tech start-ups, and greenery. And it has increasingly looked at ways to tailor itself to younger generations.

Benkuskas, an older millennial himself, says he's on a mission to attract young professionals from abroad to come and live in Vilnius, and believes that just one visit to the city will be enough to show its appeal.

"If you spend a week or more here, you can understand that we have a lot of advantages compared with other European cities," he said.

Small city, big advantages

The World Happiness Report ranks countries based on a survey conducted by Gallup, where respondents evaluate the quality of their lives.

Lithuania's under-30s rated themselves 7.76 out of 10, notably higher than their US counterparts (6.392), with locals citing factors to BI such as low rent, free education, and a vibrant nightlife.

Ignas Kazlauskas, a 28-year-old who runs a sustainable architecture firm and previously lived in the UK, told BI that Vilnius holds its own against other European capitals.

Vilnius offers a stark contrast to London's hustle and bustle, he said — less densely populated, not overwhelmed by tourists, and about half the city is made up of green spaces.

"The city is pretty laid-back, which is nice," he added, sipping a filter coffee at a trendy Old Town café where other patrons sat reading in the sun-drenched courtyard.

For a capital city, it's relatively small — about the size of Denver, which means that everything is within easy reach.

"You can basically walk across the whole center of Vilnius in half an hour," Kazlauskas said.

The city's 90-or-so lakes, ideal for kayaking, and some of the largest forests in the country are also nearby. When the weather allows, Kazlauskas pilots a hot air balloon as a hobby.

"People are definitely much happier when they can spend time outdoors and relieve the stress of work, relationships, or whatever," he said.

Immigrant inflow

For decades, organized crime and a struggling economy led hundreds of thousands of Lithuanians, especially the young, to move abroad. However, many are coming back, with returning Lithuanians representing a quarter of all immigrants last year.

Tens of thousands of immigrants from outside the EU, many from Ukraine and Belarus, are also moving to a transformed Vilnius. The mayor and Lithuania's tourism board want others to follow suit.

Part of their pitch is that Vilnius, despite rising housing costs, still remains one of Europe's most affordable capitals in which to rent.

According to Eurostat, the average monthly rent for a one-bedroom apartment in Vilnius in 2023 was equivalent to $876 — almost half the price of Berlin and about a third the price of London.

It can be even cheaper for students. 20-year-old Ričardas Pranculis pays only €65 a month, or about $94, for student accommodation.

Even on a student budget, he said he doesn't struggle to make ends meet. "I like living here," he added. "Wages have been increasing, more young people can work and earn money, so more people can try different hobbies."

According to an affordability index by the personal finance website Finasvalp, Vilnius is the fourth most affordable capital in Europe.

Elizabeth Avgusta, 24, a senior fund accountant from Indonesia who moved to Vilnius four years ago, said her salary goes a long way.

She told BI that it's easy to find meals for under 10 euros, or about $11, though the city also offers plenty of upscale dining options, including four Michelin-starred restaurants.

She also said she appreciates how inexpensive and convenient it is to travel from Vilnius. The airport is just a 15-minute drive away from the center, and several budget airlines operate from the city. With many European destinations in easy reach, Vilnius is an ideal base.

Avgusta said she's considering a trip to London soon, having found round-trip flights for 30 euros. And her colleague, Adriana Doroškevičiūtė, 23, had just booked a cheap trip to Berlin.

But Doroškevičiūtė says that even when traveling, she finds herself longing for Vilnius.

"Whenever I travel, I always want to come back," she said, describing Vilnius — her hometown — as a city that's comfortable to live in and full of things to do.

Outside a food hall beside the Baltasis Tiltas, or White Bridge, 22-year-old Goda Ponomariovaitė looks for a place to sit.

The area, a vast green space, is teeming with young people — blasting music at the skate park, shooting hoops, and playing beach volleyball on a patch of fake sand.

On a sunny day in August, LA's Venice Beach comes to mind. It's also all free to use, probably why it has become such a popular hangout for the city's youth.

According to Ponomariovaitė, Vilnius has plenty of free or affordable hangout spots. One of her favorites is a former prison, transformed into a vibrant cultural center.

It attracts artists and aspiring musicians and regularly hosts free concerts and film screenings.

"We have so, so many bars and nightclubs," Ponomariovaitė said.

However, she says that what sets Vilnius apart from other cities she lived in, like Amsterdam, is how safe it feels.

"It's very safe, especially for women, to be in Vilnius and Lithuania at night,' she said. "If you are walking, you don't need to worry that somebody will kidnap you or something."

On an evening in mid-August, youthful influencer types lined up outside trendy restaurants, while bars overflowed onto the cobbled streets with businesspeople clinking beer glasses. Meanwhile, an older crowd dispersed after attending a free show in the town square.

Vilnius is trying to offer something for everyone — or, as the mayor confidently puts it, everything for anyone.

"You can find here everything you need for a high quality of life," he added, "and that makes the city attractive."