Lodging prices are no longer the bargain they used to be several years ago; now they're comparable to standard European prices. For the bargain hunter, standard tactics apply: if hotel prices are too much, look on the Internet for private rooms, pensions, or apartments for rent, which can sometimes be found for a very reasonable price. Best deals are usually offered off-season.
Hostels affiliated with the national hostelling association are often horrid options for backpackers because of imposed curfews. Additionally, Hostelling International HI affiliated hostels are frequently used by large school groups, which means young children may very well be screaming their heads off and running around the halls. Some private hostels are clean and welcoming, but others can be worse than HI hostels.