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Congrats on the job!
I'd say for sure rent, and rent outside the city. IMHO, the market is too unstable to risk a drop in value in that short of a timeframe.
My sister in law & her husband just moved back here to MI after living in the city, and it's a pain having kids there. Parking is a huge hassle, so you'd want to go down to one car. If you want a good school, you'll either have to live in an area you won't be able to afford or you'll have to send them to private school. So my $0.02 is find a nice place in the burbs.
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