Well, I've always managed to fit things like sleeping and cooking space into my music dwellings, industrial loft spaces with high ceilings are best, but any sort of space can work as long as you prevent normal dwelling needs from encroaching on your music and workbench areas.
Even pointy guitars can put out good vibes if hanging far out of reach with their guts ripped out. Minimum 12' ceiling height.
Then I got married and stuff got all bumched up...
I would suggest some preventive music care to prepare for future GAS outbreaks, like build an addition, along with possibly negotiating giving up the basement space for non-music related use by others.
Seriously though if you are temporarily working with not enough space I find that putting EVERYTHING on casters helps a lot.