I would go with the house. My DH and I have been on a de-cluttering/downsizing and simplifying kick for the past year, and it feels SO good. We've gone from a 4 BR, 2.5 bath house with a 3-car garage and outside shed on 11 acres, but far from everything and a 59-mile round-trip commute for me daily; to a 2 BR/1 BA apt. with no garage, 21-mile round trip commute for me, on the busline, walkable/bikeable to lots of great places, stores, and restaurants, and I'd have to say that our quality of life has improved immensely!

Sure, there are things I don't particularly love about apt. living (having to dress to take our dog out each morning rather than just letting her out back into the fenced area in my jammies being high on the list), but overall, having a smaller place to clean and take care of is a huge plus, as is being closer to everything. Having a shorter commute to work has given me more time every single weekday to do things I'd rather be doing than wasting time driving and/or sitting in traffic. Having less stuff has been liberating and enlightening too!

In our 1100 sq. foot apt. we have 6 bikes, other hobby stuff, and the three of us (DH, doggie, and me), and we're doing just grand. If I were single, I'd live in an even smaller space. I feel like I used to be owned by "stuff", and now I feel much more in control of everything, somehow. But that's just me - everyone is different, and the noise of the house for you might indeed be enough of a negative to rule it out. Is there another apartment option closer to your work and less $, by any chance?

Like someone said, don't count on your house selling anytime soon. I don't think many people are moving to the Gulf these days. If Katrina wasn't enough, the oil spill has certainly depressed the market there even more. If it does sell; great, then you can get your dream place, but until then, I'd go for the less expensive option, even if it means living out of Rubbermaid containers for awhile.

Good luck!