One of the best places to live in New York is New Jersey. Large areas of Hoboken and Jersey City are just as easy for a Manhattan commute via the PATH subway or bus or even a ferry. Rent goes roughly 25% cheaper for similar digs, everything from basement studios to ultramodern luxury towers. Bonus: you don't pay NYC income tax, and NJ sales tax is less too.

I've lived in NJ and commuted to Manhattan for essentially my entire professional life, and quite satisfied with it. I currently commute by ferry which is insanely pleasant compared to a subway.