<p>Environmental sustainability and enhanced human happiness are fundamentally a question of tradeoffs. Although energy consumption creates air pollution and leads to climate disruption, the role of household energy consumption in individual happiness is noteworthy. Using survey data from the 2018 China Family Panel Studies (CFPS), this work revisits the energy-happiness paradox hypothesis and, using multilevel analysis, elaborates on the role of housing outcomes in the energy-happiness nexus. Research results show that, in China, more energy consumption can lead to greater happiness. Furthermore, we demonstrate that the housing outcomes related to tenure, dwelling location, and multiple homeownership also impact the energy-happiness nexus. Therefore, improving individual happiness and reducing overall energy consumption requires that the government address the inequality in energy consumption between cohorts with different housing outcomes while also promoting energy efficiency. The findings here are valuable in devising and developing energy consumption policies aiming to achieve a balance between the positive and negative consequences of energy consumption.</p>