PLEASE help.. Need advice on moving..

Ljd425

We are moving from Connecticut to New Jersey as soon as we can decide between the two places we've narrowed ourselves down to.  I'm due in 10 weeks and DH's job changed and he has been working there during the week and coming home on the weekends..we thought we'd be moved by now and I desperately want to get settled before the baby comes!

Our problem is basically size or location..we are renting for probably the next year or two before we buy for a few reasons like we might buy back here in CT and we are moving quickly and don't have time to look or committ to buying.  Anyway..one option is one of DH's close friends is renting out their house and it is plenty of room, space for baby, space for my family to visit, space for DD to have her own room, just lots of room.  It is also 1 min from the elementary school and is on a dead end street with a playground.  The kindergarten is half day which I prefer as DD will be 4 going in as opposed to full day at the other place.  It is $200 more a month than the other..

The other is a first floor of a home that the couple is completely redoing so everything is new (as is the other home)..it is in a better, central location and closer to DH's work..20 min drive as opposed to 45.  It is near DH's family and the few friends that I know.  But it is small..2 small bedrooms, one bigger than the other, no room for our kitchen table or any really..DH would have to make one to fit..We'd have to have baby with us for a good while and even if we want the girls to share a room I am not sure all their furniture will fit in the bedroom and I think DD would be upset having to share a room and pretty much have no space.  She will be 4 1/2 when DD 2 gets here so say she'd be 5 when she has to share with her 1 yr old sister.  I guess the thing we like about this smaller one is the utility bill would be cheaper, it is pretty, it has a cute front porch, the owners are super sweet and like us, on a dead end road, and close to what I know from when we lived there before..lots of shopping etc.

DH's friend's house has the room we would want and not be squished..I don't know the area well (it is actually NY) and I don't know anyone, but I assume I'll meet moms from school and what not. 

So do we go with space or location?!?!  Suck it up and be squished for 200 less a month and better location or be in a new area and have tons of room for our growing family and guests?   Moms of 2 + will hopefully tell me I will want the space!!!!! 

Not that this matters but my mom thinks we should pick the big house because I am a SAHM and am home a lot and will go crazy if cramped..DH's mom thinks we should go with the small bottom floor..probably because it is closer to them lol..HELP!!

And the reason I am posting this is because it is stressing me out like crazy and we can't decide and need to this weekend as there are other offers on both..I just need something to click or someone to shed some light!