What city were they living in?

I think the entire movie takes place in Los Angeles.

I remember the photo processor repairman mentioned having to be in "Heber Springs" by a certain time - the only Heber Springs I know of is in Arkansas. Surely this doesn't take place in Arkansas? Although the "SavMart" looks an awful lot like "WalMart."

It was filmed mostly in the San Fernando Valley though.

Apparently filming commenced in LA but the setting looks nothing like it. The douchey repair man says "I've gotta be in Heber Springs by 3" and the only Heber Springs on record is in Arkansas. The green foliage setting looks much more like Arkansas than LA and Fayettville, Bentonville, and Springdale all have suburban sections that reminisce that of the Yorkin house.

La religion est fausse, mais vous êtes réel. https://m.youtube.com/watch?v=bpq26sPbC_4

I don’t know what city it is supposed to be, but the patch on the kids’ soccer uniforms says Holland Day School.

My name is Colin Creevey
and I’m a photoholic.

Any town. Doesn't really matter.

It seemed like two completely different cities. Sy's apartment looked like NYC and the family's fancy house was clearly in Los Angeles (you could tell by the foliage and blue street sign on their street).