We have a small house by American standards. We have a large family by modern American standards and yet we get along just fine.
5 kids in a 3 bedroom 1.5 bathroom house with 2 dogs and 2 cats.
Here is the thing. We may be right on top of each other, but we have fun. We have tickle fights and dance parties, pillow fights and hug fests.
I am so blessed to live this life. It may not work for others but it works for us.