Manhattan where is the best and least expensive place to stay in New York city?

I've visited New York twice and both times on something of a budget, if for no other reason than budget accommodation in NYC costs as much as luxury accommodation in other places - it's super expensive!  On my first trip to NY I stayed at a place on East 51st st near the UN (sorta) called The Pod Hotel and I really enjoyed my stay, it was a few years ago so prices will have changed somewhat, but as I recall it was in the $110-$120 a night range for a solo pod.  The rooms aren't capsules like those Japanese business hotels, instead the rooms are more like cabins on a ship, small but functional.  Unless you pay extra the bathrooms are shared, but they were kept super clean and there were 4 or so on each level so I never had to wait to use one.  The location was really good, really close to the Subway, restaurants and bars and stuff nearby, good option for more money than its worth, but by NY standards a good deal.   http://www.thepodhotel.com/ On my most recent stay we used http://Airbnb.com and got a really good deal on an apartment in the East Village.  For 4 nights we paid less for a whole apartment than we would have for the same stay at The Pod where we would have had a small room and bunk beds.  I understand there is some legal action going on with Airbnb in NY at the moment, so in future there maybe be less options available there, but for the time being it's a great option to consider.

NY has a decent hostel, http://www.hiusa.org/nyc, located on the Upper West Side in Manhattan. You are staying in a dorm room, but with prices in the $60-$70 range, it's half the price of a pod room.