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ok...Capitol Hill is sort of getting grungy, but there are nice areas of it, specifically the north and northwest. close to a lot of drugs and night life restaurants, gay and lesbian stuff. grocery stores. close by bus to downtown and the u district. permitted parking. spiky hair, tats, piercings and runaways looking for a fix and a place to crash. still...probably the least homogenised of the areas i feel qualified to to comment on.
i personally live in Eastlake, and have done so for 20 years. you can find affordable housing, parking is on a permit system, but can be a bitch...restaurants and a tiny but devoted nightlife. big upside: a mile from the U district, and about a mile from downtown. big downside: Paul Allen is buying up the south end of the lake to turn it into a biotechtopia. might drive the rents up.
fremont is groovy and funky lotsa restaurants and some pubs, lots of yeast in the hood, breweries and bakeries. major food coop (expensive, but organic) bills itself as "the center of the universe" arty. farty. close to downtown, kinda.
Ballard. friendly warm and Scandinavian! probably the cheapest area to live, as in good value for the money. spread out. wide open parking as far as i know. big parking spaces at the grocery store, because, doncha know, old Norwegians=bad parkers with big cars.
IMHO, stay away from West Seattle, for now anyway, and white center (aka rat city)
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