For that price range he is talking about, he is practically in range for a brand-new Rabbit, maybe a few dollars short. Either way, hatchbacks or wagons with the correct configuration can hold quite a lot of stuff, the only major difference being that they really can't haul a lot of stuff similar to a pickup.
If you do end up looking at Volkswagens, I highly suggest investing in spring stoppers to prevent tire rub. I know it was a problem on the MKIV models, and I would assume much the same for the rest of the crowd. I personally keep looking for an MKIV Jetta GLS Wagon with the 1.8T and a stick, as IMO it is nearly a perfect car (fun to drive, capability, relatively "quick").
If you really want to be cool (others might call you awkward), you go for the TDI models...