Where do you store all your yarns and your works in progress? In our small home there's no better place for my crochet supplies than hanging, neatly out of the way, from the railings of the staircase that leads up to the house proper (we live on a steep hill, so the ancient front door that doesn't open properly (here) is one floor below the main living area of our home).
You see? It doesn't look half-bad even. In fact, the staircase is a blessing when you live in a small house, because each and every stair can be packed full to overflowing with stuff neatly organized to store shoes, school packs, beach towels in the hot season, and firewood and fruit & vegetables in the cold one (the staircase isn't heated).
And of course, the lovely wrought-iron bannister can also be used to store things, in baskets hung from the iron motifs, dangling out of the way, off in the void - when you live in a small house, you have to be a little creative and search out space, as with my under-shelf jars.
Maybe hanging baskets aren't quite as pretty or convenient as cabinets where yarns, fabrics and all crafts supplies can be stored and displayed, but it's a system that works very well for me: my crochet work and yarns are out of the way, but not so far away that they could go forgotten for months.
Now, if I could only find a way to hang a table and a chair out there, floating fairy-like in space, I'd have my own little studio. A hanging studio!