After being laid off, would you take a job that’s close to your old salary even if you know you were underpaid before — or keep holding out?

I’m curious what others would do in this situation.
I was recently laid off from a role where, looking back, I know I was underpaid for the level of responsibility I had. I was doing work that was above my title/compensation, and I had been hoping my next move would be a step up financially and professionally.

Now I’m interviewing, and in conversation with my friends and old colleagues it seems like quite a few people are faced with a potential decision: would you take a role that’s close to what you were making before (maybe even slightly lower), knowing that you were probably underpaid previously or would you continue holding out for the compensation/title you feel you’re actually worth?

The options…

Take the offer — get stability, income, and avoid a long unemployment gap, but potentially risk getting locked into another role where I’m still below market.

Take the offer but keep interviewing quietly — use it as a bridge while continuing to look for the right opportunity (although I know some people feel strongly against doing this).

Decline and keep searching — hold out for a role that better matches my experience and market value, even if it takes longer.

For context, this isn’t about being unrealistic or turning down a good opportunity. It’s more the frustration of feeling like I already accepted being underpaid once, and I don’t want to repeat that mistake just because I’m coming off a layoff, especially with the responsibility and workload.

What would you do? Have you ever taken a “close enough” job after a layoff and ended up happy with it, or did you regret not holding out?