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as a 3rd generation San Diegan, I dreamed of living in Cardiff or Leucadia. Even if I had the money I'm not sure I'd live there now (unless I didn't have to go anywhere). Traffic on the 5 is a nightmare if you have to commute. I know friends who live in Carlsbad and take the train down to USD (further south than UCSD) and that isn't a bad way to go. But by car? No thanks...
I think your housing price estimates are a bit low unless you want to look more inland. When we were looking 3 or 4 years ago anything within a few miles of I5 was close to a million.
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