Have you de-cluttered and downsized everything you don't need or use? If not, I suggest doing that and then see how you feel about staying. If you have, and everything that you can stow is already put away and everything we see if the picture is where it needs to be, then maybe you do need a larger place if you want to entertain friends.

I like your stroller parking.

Think vertical space - wall cabinets with doors, some shelving. Use grown-up decorative containers to hide kid things.

Art work placed in picture frames (per kid) and changed out.

Like in school, everyone put things up before next project. Or no one continues. If you end up having to clean what they're supposed to, goes in the trash/timeout/donated... I only had one kiddo who ended up with 2 toy cars for a year.

Maybe move the table to the grown up side. Find something vertical for the catch-all area.

I love small spaces but it does require self-discipline and ingenuity to make it function and flow. It's good training ground if one is open to the experience.

You folks in the city like that sure do lead a different life! All those apartments must be like the city equivalent of the trailer park and the long narrow trailers.

The same can be said about a lot of the townhouses in our modern suburb-----they are like vertical trailers all standing in a row!