As the family grows, so does the laundry. In some ways I am NEVER caught up, but with my system it seems more manageable.
Our laundry room is attached to the kitchen. The wise designer of this house also included a door to "hide" it all. I am proud to say that I mainly have the door open. The laundry room has a front loading washer and dryer set. Above them are two shelves. One that was here upon our arrival and an additional wooden shelf was created by hubby.
I keep all sorts of helpful household things in this room. A box of hammers and nails. A box of extension cords and outlet covers. A tub of swimming suits and towels (for you sometimes need quick assess when invited to an indoor pool!) A box for hair cutting supplies. And a box of touch up paint for those nicked up places around the house. Of course detergent and cleaners are stored very near the place they go...inside the washer! I even have a small garbage can for cleaning out the lint filter. A small container for missing prizes (a rock, that tube of chapstick, a matchbox car) and also a jar for collecting money are found on the shelf.
I make it a plan to get one load going each day. First I remove anything from the dryer (along with the lint)! piece by piece and fold it. As I fold each piece, I place it into a small basket labeled for each person in our family. Then I can move the wet laundry to the dryer and place a new load into the washing machine. When the individual baskets are filled, I have each person put their clothes away. Even the toddler can do this work.
In the past when laundry was dry and ready to be folded, I would dump it all on the floor and invite the children to fold with me. There was lots of frustration from the kids. Sometimes the laundry would sit in the basket for days...weeks? waiting for someone to fold it. By the time a requested item was found in the bottom of the basket it was a wrinkled mess. And who wants to iron things that are not meant to be ironed?
About a year ago I came up with the idea of folding right out of the dryer. It meant that I couldn't start the dryer without being available to fold in about 30 minutes. But if I was making breakfast or cooking dinner I COULD pop in there. So this began the trend.
Each piece of clothing that is folded goes into the appropriate tub and no pile of clean clothes waiting to be folded...ever!
A few years ago my dad built a custom drying rack that hangs on the back wall. It folds flat against the wall when not in use. 
This leaves just enough room for the ironing board that is pulled out one day a week to iron daddy's work shirts and pants. The iron and ironing materials are stored on the shelf above the washer.
So this system is working great for us right now. It does mean that I do all the washing and folding myself. I have helpers with the sorting and putting away. I think my 10 year old could easily take my job over....but I'm waiting for the perfect moment to offer it to her.
I wonder if this will last many years....I hope so.