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The cost of living here is killing us. Happy to hear your thoughts. We are both feds but don't see home ownership in the horizon with the way things are moving. Tell us about your cities/towns. Wife has lived in chicago, omaha, long island, and orange county...so she is pretty flexible. I have only lived in the east coast. Surprisingly, we've enjoyed our vacations in GA, SC, NC--so thinking about relocating there. If you could go anywhere, where and why?
For a Federal couple, I'd take a good look at Kansas City. We're both Feds and had the opportunity to spend 12 months on TDY out there during all of 2014. It exceeded all of our expectations and we loved it, so much so that we're considering going out there "for good" next year when our oldest starts Kindergarten
Being TDY for a year, we essentially locked the door on our DC apartment and actually experienced life in KC as a dual-income GS-14 family and saw how far our salary went. Returning to DC after a year was bittersweet. Going from a 2,600 square foot historic home on the National Register with 2 fireplaces back to our 1,100 sq. foot 2 bedroom in NW DC was more of an adjustment than we thought - especially for my spouse.
There are a lot of Federal opportunities in KC so the probability of at least one of you being able to stay with the USG is high.
We're both native NYers. If you asked us 2.5 year ago, we could never imagine ourselves in a place like Kansas City long term. Seeing and experiencing were believing for us. A nice sized city with many amenities and a great place to raise a family.
A former colleague of mine at my previous agency (CT native) relocated to KC as a fed a few years ago. Their family has thrived and enjoy a quality (and pace) of life that would be impossible on their salary in Washington.