My DD and grandbabies also live with us. I sew in the kitchen when everyone is asleep or on weekends when the babies visit their other Mamaw and Papaw. My fabric and sewing things are in two tall cabinets with doors in my room.
I keep hoping that someday DD and SIL will finally decide to get them a place. I don't mind them living with us. I get to love and spoil my babies every day. But they need a room of their own, where they can play with their toys no one can fuss at them.