Jessica,
You can RE living anywhere. LBYM, prudent investing, good income stream will get you there. While higher taxes and housing costs will hurt here, incomes offset at least some of that differential. While houses may cost more here, you can probably sell them for proportionally more down the road as well. We have always lived in metro NY and had moderate incomes and still managed to get to FI in 20 years or so. Our big advantage was a number of years with dual incomes, especially before kids. Two really can live almost as cheaply as one, and pocket the difference.
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