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Having moved from Oklahoma my wife and I have had to go through an adjustment period. We currently live in a 1,046 sq ft 3/2/2. The living space is fine but the closets are tiny - that's where we struggle (I'm married w/ a 70lb dog and 2 cats, no kids). We have multiple hobbies that require a lot of equipment so closet space is at a premium (SCUBA diving, backpacking, motorcycles, surfing, skiing, shooting, sewing/quilting, etc).
We figure 1,400 sq ft would be perfect for us, even if/when we have a kid. The bigger the house the more it costs to maintain, heat/cool, taxes, etc.
I am renting a 1600sqft house in TX and it is honestly way too much space (live with fiancee, no kids, 1 cat 1 dog). Coming to Bay Area CA soon and looking forward to "squeezing" into a 1000-1200sqft house again. :-)
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I see lots houses in the Bay Area are 3 bedroom and 2 bathrooms (which are fine). Then the square footage is 1200.
Like this one,
http://www.zillow.com/homedetails/475-Northaven-Dr-Daly-City-CA-94015/15473710_zpid/
Is really that small? or the owner builds lots rooms just not reporting.