I am a native born Texan, and was born and raised in East Texas until I left home at age 19 to serve in the Army. I moved to Austin in 1985 for graduate school at the University of Texas at Austin, and knew I'd never leave. Austin is a cool place to live, but it is overcrowded, overpriced and getting too weird. Explanation: a popular motto around here is "Keep Austin Weird". Frankly, I'd rather try to keep Austin normal.
Austin has lost a lot of its charm over the years. The cost of living is very high, real estate is out of this world. Austin used to have the charm of a small town, while only "acting" like a city. Now, the tail wags the dog. Condos for rich people dot the landscape. Traffic is a nightmare.
It's to their advantage that your daughter and her family don't want to live in Austin. Most newcomers to the area live in small (but growing) communities outside of Austin like Bastrop, San Marcos, Kyle, Buda, and Cedar Park. Based on your/their specifications, Bastrop would probably be a good bet:
https://en.wikipedia.org/wiki/Bastrop,_Texas
Buda, TX is a small town south of Austin (approx. 13 miles) that has the advantage of having a Cabelas, if they are into the outdoors:
https://en.wikipedia.org/wiki/Buda,_Texas
Best of luck,
Dave
PS - talk about your traffic nightmares, people in Austin can't drive worth beans. I suffered 7 rear end car collisions in an 18 month period. Some were little "love taps", but one resulted in a broken neck, and another resulted in a closed head injury. One of the defendant's lawyers during my deposition said "Well, you must not be a very good driver" to which I pointed out that we were driving on a 3 lane highway with traffic going in one direction, and that I wasn't driving in reverse at the time of the accident. Though I never went to law school, that seemed to settle opposing counsel down for the rest of our encounter.
Regards,
Dave