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Few of the answers given were concrete. So here's my take.
I am able to run singleuser Continuwuity on a 8GB RAM Pi machine with 4 cores, and join many large rooms (around >=1000 users, although the number of homeservers in the room is a more suitable metric). It would use around 2GB RAM, but you can tune it for less (basically reduce cache values, but ask in the room for more advice).
After a few months the database hovers at around 2GB, because the database uses zstd compression by default. It's not anyhow a major problem like Synapse, just don't use HDD for storage and you should be fine.
For best experience, I also selfhost a dedicated caching resolver (unbound) for continuwuity. That takes like a few hundred more MBs of memory.
Given the fact you'd like to play around with it, a mid-tier VM/VPS (2CPU, 2GB RAM, 20GB SSD) is a reasonable starting choice. For a non-federating server, it can take a lot less resource than this.
Thanks for the detailed response! Those specs are very close to what I ended up getting a Synapse server running on. I would like to try getting Continuwuity going next and compare.