According to the 2012 report Adelaide had the highest proportion of people who felt the city offered quality living, good economic opportunity and affordable housing.
It was also the least expensive of the capitals, particularly for food, mortgage repayments and financial and insurance services. But it appears South Australians are a solitary lot, with far more people in Adelaide choosing to live by themselves.
The city had the highest proportion of single person households, its 38 per cent nearly double that of Darwin or Sydney.
The federal report came as the state government announced a partnership on Tuesday to foster growth in Adelaide's suburbs close to the city centre.Planning Minister John Rau said increasing housing in those inner suburbs would give more people access to the infrastructure, facilities and services already in place.
"In the future, Adelaide will be a city where citizens have access to the best choice in services, housing and transport options," Mr Rau said. "Already we have seen the city centre begin to blossom and this project will accelerate the drive toward change."
But opposition frontbencher Vickie Chapman said a population increase for the inner-rim would be a disaster without a major overhaul of the city's transport network.
"Without upgraded road infrastructure in the inner-metropolitan area there will be chaos on our streets," she said.