The cost of living in Vancouver isn't that out-of-control, as long as you don't attempt to buy property. Food and other expenses are comparable to those across Canada. Unlike many other Canadian universities, there is no student housing ghetto in the immediate district; UBC is primarily a commuter campus, though in recent times that has been changing. The university administration has been involved with developing several parcels of the campus into market housing. This has done little to change the fact that UBC is located in a wonderfully tranquil and picturesque location, and that it suffers the disadvantages of such splendid isolation. Most students live off-campus, commuting in a half hour or so by bike or bus.
Rents off-campus can vary tremendously. Decent basement suites, Bachelor and one-bedroom appartments within a half hour bus ride run from perhaps $1000 a month; larger apartments only get more expensive. Such places, despite comparable prices, vary considerably in quality. Be sure to visit potential sites in person and be prepared to shop around (do not underestimate the length of time you will need for this).
The closest and prime neighbourhoods to search in are Point Grey, Kitsilano, Dunbar, Kerrisdale, Fairview Slopes, VGH (Vancouver General Hospital)/City Hall area (listed as South Cambie on the map above), and the West End (downtown). The first three border the University Endowment Lands. Many UBC students also live in peripheral, less expensive neighbourhoods still within Vancouver - Strathcona, Commercial Drive (Grandview Woodland) and Marpole. Being further away, rent is less in these areas. All the neighbourhoods mentioned are within a reasonable commute. The west side of Vancouver, where UBC is situated, is the 'better' part of town in general, so the apartment costs are higher. Prices decrease on the east side of Main Street, which basically divides Vancouver to West and East.
Looking for Simon Fraser University instead? By popular request, here are some links that will describe neighbourhoods closer to SFU in Burnaby. These neighbourhoods include UniverCity, Capitol Hill, North Burnaby, and Westridge.
If you are a smoker or have a dog or cat you may have more problems finding a place that is friendly to your lifestyle (you deviant!). Unlike some other provinces, in B.C. it is ok for landlords to refuse pets. So, in addition to the newspaper, veterinary clinics often have a list of appartments which will accept pets in their vicinity. The chain of pet food stores, Bosley's, also compiles such a list (they have many locations--the one closest to the school is at Dunbar, and can be reached by phoning
I strongly suggest that you come out in June or July to secure off-campus accommodation for September. Searching in August is horrific, albeit not impossible. Don't be discouraged; the fact remains that every year, thousands of students, many of them of the "starving" sort, do find accommodation and live, work and study here quite comfortably.
Some advice on house-hunting. Obviously you will need a temporary place to stay, while looking for a place to live. I recommend staying in a private home while you look. This way you can save money (no hotel), and you can ask your host questions about the city. Here are a few sites that you can use to find that temporary lodging: