My girls have taken to setting up many 'tea' parties at their little round table in their playroom. We recently moved almost all of their toys and things into the front room, which had served as office and craft supply room. They're now directly between the living room and kitchen. It's now mainly their space and they've never played with their things more. Children want to be were everyone else is. Close to where mama works and cooks, not tucked away in their bedroom.
The sacrifice of space is well worth it to be able to watch them play and imitate so near me. And what could make a house a home more than the bright and joyful spaces of children?