When I got my quilting frame and machine setup, it occupied the living room, along with my cutting table.
My main sewing area occupied half of the family room. Not the best place since that's where the TV is and where everyone hangs out. I was limited to the times I could sew.
Then I got an embroidery machine and had to put that in one of the back bedrooms.
When our son moved out, I moved my sewing room into his bedroom. Fortunately I was able to move the cutting table and embroidery machine in there also, but the quilting setup stayed in the living room.
My husband is a woodworker and he's trying to convert our garage into a shop but it just isn't enough space. He hasn't started moving stuff into the house yet but I don't think I'd have a complaint leg to stand on it if he did!