I've been searching for years for a workable toy storage solution. We have a three bedroom home, with one of the bedrooms serving as an office for my work-at-home husband. Our living area is one big room, only segmented by a stairwell in the middle. So the main kitchen/dining/living room is one big L with small hallways on the remaining two sides of the stairwell.
So, we don't have a playroom for their toys. So I had to make space for them in our main living area. I chose to put it along the wide hallways leading from the front door and one side of the living room. So they've got a designated area that's theirs.
Here's a living room before picture:
We got the Trofast system from Ikea. Even though it wasn't super-chic, I liked the idea of the varying size bins. Plus, there's a way to hang dress up clothes from the towers.
Once I got the basket system up, I noticed the blank wall opposite. Luckily Pottery Barn kids was having a huge sale, and I got the blackboard and corkboards to display their artwork.
This is the living room after. They still pull everything out in the floor when they're home, but at least it can all go away.