We currently live in N. California. We have had a place at Lake Tahoe for many years. We looked at Arizona and Nevada for retirement, but it wasn't for us. About 5 years ago, we bought a large condo in San Diego, which we are now renting. It has doubled in value since we bought it. We plan sell our house and spend April through September at our place in Lake Tahoe and October through March at the condo in San Diego. Can't wait for retirement to get here.

For those in the real estate bubble markets, you may want to read yesterday's Tax Advisory Commission's report to "W".
The two nearly parallel recommendations are to limit and/or eliminate federal tax deductions (mortgage interest, state/local taxes, medical expenses, charitable deductions under 1% of AGI, and more) for individuals/families.
M