What does “I need space” mean?

Background - I’ve been seeing this guy for two months. It’s been very fun, passionate, intense, overall amazing. We connect so well. We don’t fight except play fight. Everything has been just fine. Except he just closed on a house, and he plans to start school soon. He also works 40 hours a week. So for awhile; he would drive to my place just to see me for that last hour of the day. My shift is 8-5 and his is 1-9 so we barely get to see each other besides our off days. And lately on his off days, he has so much to get done. I’m just confused because he told me he can’t give me his 100% all and it’s not fair to me. Don’t know if this is some test or a way to let me down easy. He even told me he loved me. This was yesterday that he told me he loved me for the first time. Invited me over to his place and I spent the night. But now this morning he says he feels like he needs space but that “I’m a priority but he has so much going on”. I’m just confused as f by this.