I'm in the San Francisco bay area, where there is a thriving music scene and nature just a stone's throw from city life, but unfortunately there is also a thriving real estate market, with both home and rental prices steadily skyrocketing. (I'm in a fortunate situation of being in a rent controlled studio since '83). Though I've lived here all my life, I have to put in my vote with the New Englanders, for what you're looking for. The music scene in Boston, for one, is incredible. In Irish music alone you can find a session any night of the week, often several in the same night. It's full of folk clubs, there's the traditional singing session at Paddy Burke's, plus the festivals mentioned in other posts.