Yup. But much worse. We lived with DH's mom and step dad for a year to save to buy a house. We had 400 sq ft and a bathroom and shared the kitchen. Quite honestly, the small space wasn't that bad. We put 80% of everything in storage.
We moved into our own house 6 month ago, and it makes this house so much better.
If it's just a smaller space, GO FOR IT. So worth it for the end result... but if you have to stay with you in-laws, i don't konw, LOL. Actually, mine weren't that bad.
Go for it!