Probably option 1. Our house is really too small for us, always has been, but we chose to have me be a stay at home mom to our 4 children for 10 years and with a few layoffs in there for DH, we never really increased our income sufficiently to move up from our small, older starter home, even after my return to work. And now, health ins premiums and healthcare costs are double our mortgage, so moving up just isn't financially feasible at this time. Long story to say that I would absolutely move if I could afford it, lol. I don't really foresee needing a smaller home at any point, because our families are close and I suspect my daughters will stay pretty close as they start their own families. It's crazy how crowded my parent's tiny house gets when we're all over, which is several times per month. And I'd love to be able to move our elderly parents in with us when needed, but no room to do that, even if everyone doubled up, lol
I haven't really traveled much, but we do love Florida and after our children are a bit older (1 flown, 3 to go!) we might consider moving there, as well. We're not particularly attached to our area of South Carolina, even though we've been here for 21 years. I'm able to make friends pretty easily, and DH mostly travels or works from home and his HQ is in Daytona.