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Yeah, even though it is not a smart choice, it is hard for me to give up my house as well. I only need to worry about it if I get in to Haas (or Stanford, yeah right).
Other than that, my living arrangements will depend on where I end up. I have a friend (former employer) in Ann Arbor that wants to let me use her guest house. It has a yard so I could probably bring my dogs and it would probably be free.
Anywhere else it will probably be an apartment or something. I guess in some places, like around Duke, you might be able to rent a big house for the same price as a studio apartment in New York. I let a friend sleep on my couch as he finished up his last year of law school (my first year working). Maybe I'll do that if I go to UCLA. He lives near a strip club.