I would find living in a small space a welcome challenge.
Just think of the money you are saving and maybe say, we'll live here for 2 years so there is a light at the end of the tunnel.
I would completely disect every inch of the place, and rethink all of your furniture.
Scour the ikea website. European apartments are very small and their furniture is small scale and usually offers great storage soluations.
storage under beds, shelving above door frames and windows, etc.
would you have room for a murphy bed? it would give you floor space when you need it...
post pics and maybe we can help you brainstorm.
Good luck!
ETA - you can use a wetbag for a diaper pail, hanging on the back of the bathroom door or in the shower when not in use.
just a side note, we moved into my inlaws house while they were building and all 4 of us (my dh and 2 kids) lived in their bedroom for a few months. The mint green carpeting (gross) and light pink walls (grosser) made me insane. obviously it was only temporary but we got through it. i used to live in boston so I understand what it's like to live in a 200sq ft apartment....frustrating but it can be rewarding since you tend to save more money not buying useless junk.
