A couple of months ago, we finally committed to turning one wall and most of the closet of our teeny, tiny third bedroom into my studio space. This represented some sacrifice on everyone's part, because we already live in very cramped quarters. (Our "house" -- really a condo -- is very tiny.)
Anyway, it's been very good for me to have a space of my own for my work (not using the dining room table is a plus; I can spread out with impunity now). I've also been more motivated to sew because I don't have to cart my sewing machine around to use it!
It's still a work in progress as I try to negotiate all of my supplies out of cardboard boxes in our storage closet and into just the right spots here, but it's such an exhalation for me to finally have a space devoted to creating -- and all the goodness that my endeavors connote.