You don't need a playhouse that costs thousands of dollars to create a cute outdoor space. A small shed will work perfectly and adapt well over the years.
If you already have a shed, you're all set. Clean it out, throw a rug in there, but don't worry about dressing it up too much. A couple of IKEA chairs and a table, a few storage units and books and you're all set.
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(Image: House to Home)

Sheex Bedding
Love this idea! My husband and I were recently in Costco and joking that the garden shed was much cheaper than the wooden play houses they were selling. Not such a silly idea after all. :)
Very cute. BUT I have a playroom in the downstairs of my house. The main living area is upstairs. My daughter very rarely even goes downstairs unless I come with her because I suppose she wants to be near the rest of us. So, I can't imagine she would play in a playhouse outside except on the occasions we are all outside together. I suppose if I lived in a warmer climate, it would be more worth it because we would probably be outdoors more often.
That looks spectacular. But no shed I've ever owned has French doors. We do have a shed in our yard and it's a breeding place for all the neighborhood spiders. I loathe going near it. No way I'd want my kids Playing in there. Yickky.
My sister in law converted a shed like this into a kind of hang out room. People use it to read or work on stuff... Every little kid who sees it is mesmerized by it. They put a real floor in it and a little fireplace - it's really great.