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I think that's your own personal preference. I personally think backyard, since now you're making the best decisions for your kid and not just the adults anymore. But more importantly of course, is the love you share with your kid so it's important you guys are happy too so you can provide that for your child. I'm sure you know all this, it's just nice to hear it out loud sometimes.
My wife and I just bought a condo and plan on living in it until our kid is at least 7 or 8 but maybe longer. There are a lot of benefits to it including not spending weekend time doing house/yard work and instead spending it as a family. I grew up in a house and my Dad would spend all day Saturday doing things in the yard or in the house (and usually ask for my help). While some days it’s nice it’s really a ton of work and most of the time I hated doing it. Another thing to consider is that living in an apartment probably means that you are closer to a city or other activities whereas a single family home means you have to drive everywhere.