IMO, where you live with your dog is not as important as HOW you live with your dog. We have a large dog and lived in a 1 bedroom apartment on the 12th floor when we got her, we knew it wasn't necessarily ideal. We just made sure to exercise her often outdoors, spend weekends hiking and camping in the good weather and took her to offleash areas on a daily basis.
If you're responsible about how you handle a dog in such close proximity to other people, then size shouldn't really matter.
All that being said, we subsequently have moved into a house so we could give our big girly more space...
