Telluride rocks!
That being said, I don't live there but have visited several times and can't wait to get back. Housing is EXPENSIVE...and an 800 sq ft shack can easily run you $800-1000 a month in rent. I love what the town has done to keep the 1800's mining town look, but this also adds to the expensive lodging costs, with strict covenants on building/remodeling in the town itself. The surrounding area is dotted with multi-millon dollar homes and condos and the nearby Mountain Village is where most of the tourists stay. A gondola links the Village with downtown Telluride and is free (subsidized by lodging taxes/fees) and is a great way to take in the specatacular views and "commute" back and forth. The gondola also serves the Telluride Ski resort so it's busier in the winter than the summer. The industry is tourism, lots of cool outdoor sports to experience and some fun jeep trails and mining ghost towns to explore in the surrounding mountains.
Good luck with your decision, Brad still lives in the area and he can give you more details.
