If you are trying to save money, you should consider living in Mountain View, San Jose, or the east bay. Living in the city is fun and will be the most like NY (you won't need a car), but it will also be more expensive. I know people who live in Mountain View and Palo Alto who get by without a car, but it is harder. There is also not nearly as much fun stuff to do outside of the city, but that also means less distractions from your start-up.

Good luck with your start-up!