As a San Diego native who has lived in AZ (even though we kept the house and other properties in San Diego), and still have rentals there, here are a few of my thoughts.
If this is a purely financial decision, and you are moving for a really great job for which you can’t find the equivalent in San Diego or any other place you might prefer, it sounds like a good plan.
Depending on where you will be working, housing choices in the Valley, like Ahwatukee, Chandler (Ocotillo) Scottsdale, Paradise Valley, Cave Creek, Carefree, Desert Ridge and the Anthem developments (some here are “pricey,”) are great for families.
The bottom line is AZ is what it is. If you are aware of all of the pros and cons and can adapt, and make the best of it, knowing you have made your choice for sound financial reasons, it should probably work out fine for you and your family. In fact, you’ll probably save enough to be able to return to San Diego someday if you so choose.
IMO, this is a far better plan for a young family than burning up everything they make during their peak earning years–living paycheck to paycheck in CA–then ending up with nothing saved in their retirement years.