Where, specifically, in Southern California?

I'm on the westside - about three miles inland from Venice/Santa Monica and you can't even get a decent condo here for 300K.

The Santa Clarita area is getting hit hard by the housing slump and you can find nice sized houses for 400K and up, but summer temps are insane up there. Farther inland (Riverside, San Bernadino) houses are more reasonable, but not really the best place to live in So Cal.

Rent prices are going up as more people try to time the bottom of the housing debacle and wait to take the plunge.

Really, it comes down to where you are going to be. Do you have a specific city in mind?