I also had a hard time finding affordable fabric that I liked. I had something really specific in my head--a charcoal gray wool--and the only thing I could find that remotely resembled this cost something like $40 a yard. Then I came across this post about upholstering a chair in gray wool felt, which set off a lightbulb in my head. I found a site selling wool felt for $10 a yard and ordered a huge roll of it. And then I procrastinated about three months.
Okay, okay, I am kind of proud of my endeavor. Other than the pilling I think the end result is pretty good.