Coincidentally, here's what my computer geek buddy had to say:
"Hosting is cheap and competition has driven the prices down to almost nothing.
F'rinstance, look at godaddy.com, one of the major players. You'll notice that they top out at $10.49 a month, and that's for some insane corporate amount of storage space, bandwidth and email accounts.
You're looking more at the $2.80 to $3.99 a month range, with domain reg."