I live in a region (southwest Virginia) where there is lots of folk music-- all I want and anytime I want it. Not only that, but there are a lot of original source musicians still playing and singing. There are lots of children and adolescents who are taking up traditional music also. Within a fifty mile drive of my house are 6 or 8 regular venues for folk musicians, dozens of long-standing contests for amateurs of every stripe. There are regular(daily or nightly) radio shows on commercial stations and a several great weekly programs on the public radio station.

I think it is largely a case of what you want. There is support for traditional musicians, but singer-songwriters and bluesmen would die of starvation in Smyth County. They could do OK, though, if they drive to the college towns.

If you've come up dry in your area, I don't think its a "national" thing.

Biglappy