Down sizing

So s/o and I were planning a move anyway to a 2 bedroom for our daughter due in 3 weeks. Well he found a place right across the street from his parents house (who I absolutely adore) but the place is TINY and only a one bedroom 😭😓, I also believe it's more than the place we're staying In.

He says it'll only be for a little while till our daughter is 1 - 2 and we can save up money or build credit, he also says it'll be good to live there because its a nice neighborhood, across the street from his parents and all his family lives in the area so they can call help me while he's working.

I don't know how to feel about it, I mean I know we can't stay here and she's due in 3 weeks but a 1 bedroom in a tiny condo with a Stafford Pit / Mastiff mix, one baby till she's 2 and two adults along with all of our stuff sounds stressful, or maybe I'm looking at this the wrong way.

What do you think?