I've had similar experiences living in Newport Beach and San Diego (Mission/Pacific Beach). I've never paid more than $1000/room (in three bedroom houses) and those are usually good sized houses or condos just across the street from the beach, which is worth it to me. If you live by yourself it could cost as much as $1600 nowadays, probably in an ~800sqft apartment. I also have friends that pay similar amounts to live in downtown SD which is also nice.

All in all I can't imagine living/working anywhere better.