I would consider the cost of moving, since you seem to plan on moving in a couple of years anyway, as well as the quality of life of the longer commute compared to the cost savings.
If you do move, however, I encourage you to consider a one bedroom. Although I know it's not ideal, you and your wife can sleep out in the living room and let your family use your bedroom when they visit.
I'll be honest, I can relate. When I went to law school, I lived in a two bedroom apartment on my own for several reasons. First I previously lived in a three bedroom house before law school, so I viewed moving into a two bedroom as "downsizing" for my new lifestyle as a student. And I needed room for visiting family. And I had to fit in all my furniture from my three bedroom home, after all, I did make a sacrifice of giving away my dining set. And I needed a a nice home office to be successful in law school. I was an older student, and not a twenty-something who could fit all their belongings in a car.
And now I am employed as a lawyer and am in serious debt, which I am managing, but it's a lot. So after I graduated I moved into a cheap one bedroom apartment, for 550 per month, and later a cheap two bedroom house for $625 per month. And although I now live in a pretty large home, my share of the cost, including utilities and cable is only $544 per month. I feel like I did everything backwards. My lifestyle was downgraded somewhat after becoming employed again, but I'm now able to build up my cash reserves again!
Just want to share my experience, I've been there.