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Kevin comments on Post ridiculous munchkin ideas! - Less Wrong
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Living in a van seems like it could decrease your cost of living a lot more than it decreases your quality of life. Getting set up in a van would cost about $12k, so it could pay for itself in a year. Here is a good guide on this.
One could also consider going completely homeless; here is an article by a math student who did that.
In the crazy economics of Bay Area housing, driveway parking for a van in a desirable location with electricity and shower access is $200-$300/month.
That's like wonderfully low rent for the Bay Area, so proves the OP's point.
Why is this crazy? (sincere question, no sarcasm)
I just meant that paying $300/month for driveway parking would seem crazy to the large set of people used to paying $300/month or less for nice housing inside in various other parts of the world.