When you think "peg rack" do you picture a mudroom or entryway? Besides being utilitarian, they can also be quite attractive especially when you hang pretty things from them. Amy covered a wall of her daughter's nursery with peg racks and made them herself so they'd exactly fit the space.
The materials are inexpensive and you can decorate them however you like with paint, a stain, stamps, or, in Amy's case, some washi tape. Amy has hung baby clothes on hers, but if you need more storage you could hang small baskets.
(Images: Amy Renea)