We (husband and I) will be in SB first week in July and the hotels with views of the beach are VERY expensive. Are there other communities/towns/cities near SB that have ocean view hotels (or better yet, on the beach)that may prove to be less expensive. $200-300 per night vs $500+ per night.

Surely not all SB hotels were that high. Which hotels did you get room rates for? Were you looking only at 4 Seasons and Bacarra?
How far are you willing to drive from SB? Ventura to the south and Pismo Beach to the north are some ideas. Pismo Beach is a good 75 min. north but has many beachfront hotels to choose from.

Of course not all SB hotels are $500+ per night--just the ones with an ocean view. I am now considering staying in Ventura--since ocean view seems more reasonable there and driving to visit SB, Ojai and the rest of the area, but not sure if we'll miss the experience of being in SB--is Ventura, Montecito, Carpinteria as pretty as SB?

Hi Goldie. SB and Montecito are very similar. Montecito is just the next "town" south of SB. it is mostly a bedroom community filled with beautiful mansions. There are some great restaurants and a few hotels there. Carpinteria would not be my first choice. Ventura is nice, although in my opinion not as beautiful. If you can get a decent rate in Montecito, I would pick that. SB is a lovely city with many great restaurants, shops, and things to do.

Montecito doesn't really have anything beachfront (I think) except the Four Seasons/Biltmore and that's obviously $$$$. Ventura has the Crowne Plaza on the beach at the northern end of town which you might want to check. Santa Barbara is a quick drive from there, but we've got some great things in Ventura, too!