I’m in the same boat- currently a one bedroom apt with wife, a 1.5 year old and a newborn (one month old today).  Fortunately I can use my parents’ garage for the time being for work, though winter is coming and they’re ready to reclaim the space for what it was intended for- keeping cars out of the elements.  I’ll be moving about six hours away from home near the end of the year and am hoping we will find a house to rent with at least a basement where I can set up a space to work.  Otherwise i’m not sure how I’ll get along since we’ll be living in the upper peninsula of Michigan…  I’m brand new to woodworking and am really enjoying what I’m able to practice and so very grateful to Paul and the online community of woodworkers who are passing on this craft for almost always no charge.