I now have a "studio" which is the master bedroom of my townhome. I feel blessed. It helps that I am single, too, as it does spill out into my living room.
I took classes with Harriet Hargrave and she told us when she started quilting her area was in a little closet on top of her washing machine ... that is if I remember it correctly. Believe me not one of us complained about our own small sewing/quilting areas in those classes!
If there is a will ... there is a way. For some it may be hand piecing and quilting. Whatever works.
ali