I have been told by multiple people that crates are the way to go. It's hard at first because they get worked up and you feel bad, but you have to try your best to ignore it and always positively reinforce the crate.
My Owen stays in the crate whenever I can't watch him closely and at night. He does wonderfully and appreciates playtime. He is doing wonderful with potty training and hasn't made an accident in the house in about 2 weeks. He goes to the bathroom right away whenever I take him outside.
You may think that dogs need a ton of space, but they like the snuggly feeling of a small space. Make sure the crate is large enough so that your pup can stand up, turn and lay down inside!
Good luck!