My bedroom serves as the nursery and is also quite low on dresser space. I use a bookshelf with one of the shelves removed and a tension bar installed to hang up my little guy's clothes. As he grows, I can just remove another shelf or two to handle his bigger clothes. I use the remaining shelves for necessities like extra wipes, receiving blankets, books, and toys.
Great for organizing the dress-up clothes and for dolly outfits as well.