Haha, yeah, I stayed at the StartupHouse a bit too. It was great being right in the middle of the city and being able to walk a block for groceries or tech meetups. Got a lot of coding done too! Too bad someone filed a complaint and got it shut down.
I've never found the cost for living terribly high. All I need is a private room in a shared dwelling. The most I've ever paid for that is $2000/month in the center of SF. Dropped down to $1000/month in the southern hills, which was still an easy BART/bus ride into downtown. East Palo Alto was $600 a month, but you had to take a bus to the Caltrain to get anywhere. Currently staying in Walnut Creek on the BART for $1000/month. I only ever rent month to month, so could get way cheaper buying longer too.