Well, if hostels are out (and I'm with you, they're not for me), what IS your actual maximum monthly budget for lodging?

The only hostels I've used in California are the one at Ft. Mason in SF, twice, and Pigeon Point. I thought they were very good value and fun in their way but I agree, I much prefer "A Room of One's Own."

Thanks for the clarification, Agapanthus.

I think you could keep this fairly loose and open. Choose lodging in Monterey for a week or two, and while there consider where to hop next. This is what I would do if I were you.

There is a LOT to see in California......it's a very diverse state with coastlines, mountains, deserts, and fertile valleys. The choices are overwhelming. I think NewbE's advice of staying in Monterey for a week or two and then moving on to a different area, be it another coastal town or something entirely different.

In February, I’d just go where the wind takes you. With the exception of local events, availability won’t be a problem. I agree with you on hostels, given your goals, but we’ve no idea what “inexpensive” means.

I still don’t think it’s going to give you a good idea of where you’d want to live, and where you move would depend on retirement income.

Other than the AT&T Pro Am http://www.attpbgolf.com/ you shouldn't have trouble finding accommodations in February. I don't know what your actual budget is, but the motels on Munras/Abrego in Monterey tend to be the least expensive. Where did you stay last time?

Just to further clarify the short term rental situation on the peninsula, the article that MmePerdu linked pertains only to the coastal areas of unincorporated Monterey County (Carmel outside of city limits, Carmel Highlands, Pebble Beach, Big Sur) and rules for the new ordinance have not been finalized. For the time being, the county has taken the position that short term rentals are still illegal. The cities of Carmel by the Sea and Monterey have both recently been more active in the enforcement of short term rental bans. There are quite a few articles on the current short term rental situation in Carmel, Pacific Grove, Monterey and Monterey County here http://www.mcvra.org/media