This post is exceptionally interesting to me because I’m literally in the exact same position. 34, lots of savings, 2 kids, just sold my home, trying to figure out what to do.

I think there are really two separate but related questions:

1) Is “owning a home” in San Diego worth the financial tradeoffs?

2) Is San Diego a great place to raise a family?

Nowadays I think you could make a compelling “No” argument to both – which wasn’t true 15 years ago when I moved here. Back then, it was a sleepy beach town, relaxed, not superficial at all, everyone very down to earth and friendly. No traffic, people would wave at you, and things were laid back and slow-paced.

It’s feeling more and more like LA to me everyday (where I grew up). Snazzy cars, fancy clothes, see-and-be-seen, people cut you off rather than putting on their blinker and waiting for you to let them in… the list goes on. The nouveau riche in Carmel Valley are a pale imitation of the old money in La Jolla or Rancho Santa Fe.

Personally, I’m just as torn as Doooh. You could keep saving aggressively for 5 or so years and renting, and you’d have upwards of $1M. Once you get to that point, the compounding interest makes chucking it all and living in a decent city in Colorado pretty compelling.

Or you could indebt yourself to a $750k mortgage if you just “have to own” in SD at current prices. Mathematically, it’s a no-brainer, but SD does have enough charms left to make it a tough call………