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I moved from Texas out to San Francisco to go to the Academy of Art Uni, and I can tell you that the school-based dorms might be worth looking into if you have a good deal of money to blow - always compare with apartment prices on Craigslist.org, check shared options. I started out in school-based housing, cost a ton, had some of my stuff stolen by the school's "cleaning" people over christmas break (who did NO cleaning btw). The clear advantage to that school is what has already been mentioned, lots of teachers that work in the industry. They've even got some Pixar people who are still working at Pixar while teaching - since Pixar is somewhat local to the bay area.
So just to summarize - check with the school's housing programs, check their prices via phone/internet whatever. Then compare to the Craiglist.org postings for shared housing/apartments in that same local area and see what you can afford.
If you're on the fence about going to Cali or going local, that's also ok, I've worked with many useful and talented individuals at the companies I've been at who have gone to the various Art Institute schools strewn about the country. The bottom line is though, getting ready to be job-worthy is 95% your own work, teaching yourself, working on amateur mod projects, and even posting in these game-artist.net forums in the competitions. You might already know that stuff, but I've known way too many people that clearly didn't hear it enough, expected school to make them ready "oh just next year they'll teach me..." being the attitude. Be more ambitious than the program that your school has to offer or your chances are slim, no matter what the school.
FYI, I'm having a great time working as an enviro artist professionally now, extremely rewarding work. Just get ready to have a sore Wacom finger from 10 hour days of photoshop painting....
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