I sew in a corner of my dining room. My house is 1400 sq ft and I have two kiddos so very little extra space anywhere. This works great for me. We can still eat at our table every night for dinner. I've quilted a large lap quilt (72x80) with this set up. Just set up my ironing board to the left of my machine for support.
I keep a few supplies in one of the drawers of my hutch. All my extra fabric is in the bedroom closet. I have a six ft table I take out when I need to sandwich my quilts.
Hope the the picture comes through. The sewing table I got on Craig's list for$15. The other one to the left was a desk my children got from their grandfather.