That's good news Amy! Don't let it drop. Like you said, at this point you have nothing to lose.
I know you think space is a problem, so I thought I would tell you a story. While we were sorting out getting our house built, we had all six of us living in a 1000 square foot apartment, four kids from 4 to 14. And for the last three or four months we had an exchange student, as well. With no real outside space of our own, and just a big sandy playground that the younger kids used now and then. And we were homeschooling at the time, so there wasn't even escape to school, though they went out a lot to other places for 'school'. For a while we had all four kids in the master bedroom (two sets of bunk beds) so we could have a room for the computer and 'stuff'. The point is, I don't think you should use space as an excuse, or let him use it as an excuse. There are ways around that if it takes a while to add on. And spending money on two homes is just delaying the possibility.
The only thing I'd think about adding is making sure that he knows that falling back into the drinking is not acceptable (since I don't think he's stopped, that's a tricky one). Otherwise, I don't see how you end up anywhere but where you are now, only with more anger and bitterness.