It might be just a problem with settling in. If so, then give it another few months.
If you have made a mistake and you are fairly sure that you have made a mistake, then it's best to cut your losses quickly and put it behind you. I see little point in renting out a house you don't want to live in. It will just restrict your ability to buy another house in future.
As you bought with cash, would you not consider taking out a mortgage and buying a more expensive home closer to where you work?