When I first found out I was to have Peter almost three years ago, I've decided that the baby will not be having too many clothes or clothes storage units.
We have three rooms. Robert and I in the master room, the boys in one and Christine in the other. Space is a bit tight in the boys' room. Remember my old white dresser? It has now been moved to the boys' room. The top two small drawers and one big one right underneath them house all of Peter's clothes, towels, blankets and bedding. I go through the clothes every two months and bring the out grown ones to the clothes exchange program and bring home some new (to us) ones for Peter to wear for the next few months. I store the "to be wear later" clothes (the good hand me downs from Joshua) in the bottom drawer. It is working out beautifully.
To make the dresser go a little further, today I minimized the clothes to 7 sets of day clothes and 7 sets of night clothes in the drawers, I also eliminated all the crib bedding as he now sleeps in a bunk bed.