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I second Minneapolis. It has a relatively low cost of living and offers so much in terms of the arts. It has the second largest theatre scene in the country (behind NYC), but MPLS does a lot more experimental stuff. The Walker is my favorite contemporary art museum in the world. MPLS has the largest fringe festival in the country, the largest organic foods co-op in the country (The Wedge), and the fourth largest LGBT population (so, it's liberal and diverse).
Have you contemplated St. Louis? The primary reason that I wanted to come back here and raise my children here is because of the abundance of free and affordable cultural amenities. St. Louis has wonderful museums, galleries and theaters! We do get arguably hot Summers (although to me they're tolerable, and they're relatively short), and while we do get winters, they aren't as bad as Chicago's.
Also, Chicago is very easy access for a weekend trip, and will be even easier in the not too distant future once the high speed rail link is completed.
Louisville and Cincinnati are nearby and might suit your needs. I especially like the northern KY suburbs because they have an urban feel, are very walkable, and best of all cheap.
My family is looking to relocate to a new city in the next year or so. Maybe you can help us think of a city?
Here's some facts about us:
We're both 23 years old and have a 1 year old son.
We both really love the community, culture & rich history of many European towns. We would move to Europe if it was that easy. We would like to be able to walk to local cafes, have actual public transportation (Nashville suuuuuuucks), culture, art museums, etc.
Although we live in a wealthy suburb of Nashville, we are low income. Very low income. We live here because we needed his family's help during the first year of parenthood, but we both agree it's time to move on. Most of the homes around here cost at least 500k and rent is at least $1200 for a 2bm. I pride myself in being thrifty and found a really nice apartment for 800/month. But I hate it here. I don't want to raise my son here. I'm thankful that we live in such a safe place, but it's, simply put, boring. I don't feel satisfied or proud of where I live.
I am an artist and he is a musician. I am currently a trainer at Whole Foods and about to finish my Human Resources degree. He is about to finish a Biology degree.
We don't care about luxury or expensive things. A rich culture is important. Lots of art and diversity please. Good food. Obviously with a young child safety is a concern, but not enough to move to the suburbs.
We're thinking Chicago, but the winters scare me!! Everything else seems great, but I've never encountered more than an inch of snow!!
We're also considering Portland for many reasons, but it is really far away from our families. It's an 8 hr drive from Chicago to Nashville, but would require a plane ticket from Portland. We love our families and still want to visit at least twice a year.
We also like Chattanooga and Asheville, which are close, but not the city experience we really want.
Cleveland is currently offering some insanely cheap options to help attract artists...and there is a good transportation system. And food and European culture (especially Eastern European and Italian) :
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