The 18-50 lenses can offer some nice bokeh, but you have to be a bit closer to your subject to get it. 18mm f/2.8 doesn't have that smooth buttery bokeh like 200/2.8 has. And its not a good idea to get in someones face with an 18mm lens for a portrait. Its not very flattering on your subject.
Short lenses with fast apertures are a bit hard to come by, especially if you want a Nikkor, and if you do want one be prepared to throw down a strong 4 figures to get one:
http://cgi.ebay.com/Nikon-Nikkor-AF-...item1e58d74bd8
With that said, are you looking specifically at primes? If so, the Nikkor 35/1.8 is a nice lens, I hear, and its only $200 or so. 35mm is not that wide, but it can work indoors for people photos so long as you are not confining yourselves to a powder room. Sigma has a 30mm f/1.4 which is supposed to be pretty nice as well. Otherwise Sigma also has some wider lenses like 20, 24, & 28mm with max apertures of f/1.8, but these lenses are not very sharp wide open and most people stray from them because of that.