Seeing as I now live in CA, the housing costs seem phenomenally low. San Antonio housing is ridiculously low, with large houses, 2000 sq ft+, going in places in the mid-$100k range. New Braunfels is not expensive by my current standards. House in the Hill Country (Mmmmm) mid $200's possible. Dang, I'm getting homesick.
I hate to break it to ya, but the Hill Country isn't that cheap - if you're buying any real land. The school district in Boerne recently bought a couple of acres to build a new school and were quite proud that they only had to pay $20,000 per acre.
But if you're really hell-bent on the Hill Country, try a place called "Welfare, TX." Seriously, it's a real "town." Actually, it's just the Welfare Cafe - a hole in the road restaurant which is the remnant of the stagecoach stop. It also happens to be one of the best restaurants I've ever had the pleasure of eating in, and in my work, I get to some awfully nice restaurants! The land around there is gorgeous. Absolutely gorgeous.