Where there's a will there's a way! You can always find room if you are really determined and, believe me, I am one pretty determined crafter.
I live on a boat which means space is at a premium; the majority of the space (and things) we have on board has to double up its uses. The six foot by eight foot (triangular!) space I have as for crafting should look like this:
This is our spare room, when we have visitors - it takes some work to get it back to a useable state. Usually it looks more like this:
I am currently running a business from this space, and although I will admit I do have a stash of fabrics at the 'in-laws' place (they live dry-side) this where I do all my creating and working.
I must say that I draw the line at attempting to quilt a queen size quilt in this tiny space, but even if I lived ashore I would send something like that to one of the excellent 'long arm' quilting services. Other than that, I will tackle just about anything, and from here I produce my stock of bags, totes purses, pouches and small quilts as well as writing patterns for patchwork.
Apart from all that I enjoy beading, papercrafts, doll making, dress making and I love to learn new things. I recently enjoyed a fascinating half day course learning Coptic Bookbinding - guess what everyone's getting for Christmas this year!. I spend much of my spare (huh) time walking our large dog and thinking of the next thing I want to try or make.