The affordable housing part is going to be tricky anywhere even remotely near the Bay Area…depends what you mean by affordable, and whether or not you are looking to buy or rent.That said, here are some smaller towns in the bay area that I find particularly nice: Check out Half Moon Bay, south of San Francisco, really cute little beach town…or, in Marin (north of the city) check out Fairfax or Sausalito (Fairfax will be cheaper than Sausalito but still pricey). There are lots of other little sweet towns along HIghway 1—the best way to find one you like is to drive up the coast and check them out. Anything on Highway 1 or in Marin is going to be close to nature—however, may also be expensive. Point Reyes Station is very very small but lovely. There is a great tiny town in the east bay called Port Costa. It’s farther from the city, and a truly small town with just one big bar and a post office, but really pretty and friendly. If you want to live in San Francisco proper, in a neighborhood that has more of a community feel, you could check out Bernal Heights or Noe Valley, both very urban, but more of a family/community feel than some other areas of the city. I also have a friend who lives in Alameda, an island off of Oakland, which is more affordable than either SF or Oakland and has a more small town feel, although it’s not actually a small town.