Friends of mine are (slowly) converting their garage into a playroom for their three kids. I love, love, love the idea of converting an underused space, like a garage or formal dining room, into a playroom.
Just one good reason to do so: corralling toys and books in a room other than your child's bedroom may help your little one settle down easier at night. Also, a playroom can easily be converted into a cool hang-out room for tweens and teens down the road.
Looking to create an inspiring playroom or bedroom play area for your children? Take a look at my slideshow of fabulous and inspiring kids' rooms. Hey, you may not have the budget for the level of fabulous seen in some of these examples (I know I don't) but almost any of the ideas can be reworked in an IKEA price range!