I don't recommend living IN Houston. However, I recommend Katy (where we are) and Sugarland. You can get a nice house in these areas for that price. We are building right now in fact and I feel the price of our home is cheap. We are paying 600K and it's almost 5,000 sq. feet with a six-car garage on a "larger" lot. Still only 1/3 acre but for this area that's larger. It's fully loaded with granite countertops everywhere, cherry cabinets, wood floors, berber carpet, wrought iron stair rails. Basically we built it with everything.
I haven't lived in Dallas However my brother and sister do and they LOVE it! I also feel Austin is wonderful!
I think Texas is a great choice! Good Luck!