We're pretty small here, too, at 920 sq. ft., but it feels pretty comfy for our family. It's crowded just because we have too much stuff, but as we pare down and simplify to just the things we use and love, it's really plenty of space for us. My husband grew up in this house, and DS has the room that was DH's when he was a kid.

I'm hosting Thanksgiving for 12 this year and don't think space will be a huge issue. My feeling is, I host for a huge crowd once or twice a year; the rest of the time, it's just us and maybe another family, and that fits fine in our home as it is. I don't need to pay the
huge difference that a mortgage on extra space would be just to entertain a few times a year.
Our good friends host Christmas for 20-25 every year, and they extend the table into the living room so everyone sits at one really long table (with folding tables making up the extra space at the end.) They're in the same sized house as us and it's fine - cozy and fun every year.
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