From Happify.com:

“The research suggests that happiness is a combination of how satisfied you are with your life (for example, finding meaning in your work) and how good you feel on a day-to-day basis. Both of these are relatively stable—that is, our life changes, and our mood fluctuates, but our general happiness is more genetically determined than anything else. The good news is, with consistent effort, this can be offset…you have the ability to control how you feel—and with consistent practice, you can form life-long habits for a more satisfying and fulfilling life.”

So I think happiness is based on external as well as internal factors. It all depends on the level of satisfaction in our lives, and how that is measured and defined, I believe.