The poll of 2,212 people from across Iraq suggests an increasing pessimism and feeling of insecurity since the overthrow of Saddam Hussein.
In 2005, democratic elections were taking place and many Iraqis thought things were better than before the 2003 conflict and were hopeful about the future.
Much pessimism appears to stem from the fact that life is not noticeably improving for many people with rising dissatisfaction about the availability of jobs, clean water, electricity and the freedom to choose where to live without persecution.
See a breakdown of how people rate their living conditions.
Some Iraqis blame their politicians for the situation - 53% were dissatisfied with the way the Iraqi government was performing, compared with 33% in 2005.
Since the end of the war in Iraq, thousands of civilians have died in violence on the streets. Support for the coalition forces based in Iraq is low - with 82% expressing a lack of confidence in them and 69% thinking they had made the security situation worse.
Those polled were split as to whether attacks on coalition forces were acceptable - but a majority still believe they should remain in the country until security is restored.
In ethnic terms, Sunnis were more eager for troops to leave - with 55% saying they should leave now compared to 28% of Shia respondents.
The belief that the US-led coalition was wrong to have invaded Iraq in 2003 has steadily increased since 2004.
Only 2% of Sunnis questioned believed it was absolutely or somewhat right to have invaded, while 78% said it was absolutely wrong. By comparison, 70% of Shia respondents said the decision to invade Saddam Hussein's Iraq was absolutely or somewhat right.
Security remains a key concern. Asked whether they felt safe in their own neighbourhoods, 40% said yes in 2004, 63% in 2005 but only 26% in 2007.