We are a family of 4 living in a 700sf apartment style condo. Location is very important to us and we are just outside of downtown. It is a really modern and stylish layout, very open, no hallway. One of the big selling points of the place was a walk through closet between the master bedroom and bath - perfect!
We bought 2.5yrs ago when we had one 18mo child. I grew up in a house but have lived in apartments for 11yrs. DH and I have been together now for 9yrs. For the past 5 we have shared a car and DH works downtown, which meant that the price of living in the inner city was more worth it for us than for some. Before kids we scorned the whole idea of buying a home and cruised through many happy years of a renter's market, living cheap, traveling and paying off debt. Sigh, the old days
I can easily see the practicality of a larger space now...more room to entertain, backyard, home office. As much as I'd appreciate these things I don't ever think I could live in a really large house - who would clean all that?? I also don't want to trade the neighborhood - by far the most walkable place I have lived, even by 3yo standards. I think about 1000 sf with a small yard sounds perfect