We have only 2 1/2 acres, and 4 kids and a very small garden. I just put a drain directly in the laundry room floor. It's not something you would necessarily want to use every day, but if I need to hose down the whole "mud" room, I'll be able to do it. It sounds like you are on the right track, be sure you get your drain in now, because that will be hard to add later, you can work out the details as you go.

First, difference between gas and electric dryer are nil in the grand scheme of life. Plus you're not limited to an electric dryer since you have gas there you could run a gas line and electric outlet and have gas. You could put a stackable unit in there and have both. Do some upstairs and some downstairs. That way not lose as much room. You say you don't like doing laundry. Why? If it doesn't include going downstairs or the related, this probably won't force you to enjoy laundry. Maybe you need to do other things? Have kids sorting their stuff? Have kids help with laundry? I would love to have a first floor laundry. It would help me so much. But it doesn't sound like that's the case with you. My thoughts, FWIW: 1-we would lose the shoe and dog feeding area Wouldn't lose it all with the stacked unit. Not sure you'd totally lose it anyway with some modification though. 2-not really any room to separate dirty clothes This could be a bit of an issue but a small wall hanging sorter might take care of it too. Or using hampers. 3-no rod to hang clean clothes as they come out of dryer Fold down rod or rod hung from ceiling? 4-the area would seem cramped "Seem" or "be"? That's two different questions 5-not sure about electric dryer- do they work as good as gas? Yes, as addressed before. We've lived with the current configuration for as long as we've lived here (13 years) Sounds like it works for you, but... BUT--I don't like doing laundry sometimes and I wonder if moving it up from unfinished basement would make it more enjoyable? Again, is it the darkness? The steps? What is it that bothers you? Darkness can be addressed with simple lights. Maybe a fresh coat of paint? A chair and a TV? Also, the clean clothes in the basement often don't make it up to the bedrooms so the kids run downstairs every morning to grab something. Well, if you don't finish laundry down there, it's not likely you'll finish it upstairs unless something else changes. Maybe you need to put shelves/drawers in the basement to store the clothes? Then just go there for your clothes. Or have the kids bring all of it up and put it away rather than one at a time? There's a number of issues here. I don't think a new location will resolve the underlying issues. If it's working, stay with it and work on improving it. Although again a stacked unit might be a possibility. Would you put clothes away if they were on the main floor? Can the dog eat somewhere else? Do you have that many shoes that you need a special room filled with them? Maybe check out some design magazines or something at the library and some organizing ideas. Might be helpful. I know this is an old thread but might still apply. I'm curious what happened.

Thanks everyone. I really appreciate all the advice. I am currently getting quotes on a tankless water heater. Mine is a 18 years old gas system. If I can create enough space for a countertop or bench that really adds value to the room and justifies the extra cost, I will upgrade. Otherwise, enclosing a new traditional water heater is also a possibility, since I’ll likely replace this one very soon. I was thinking of stacking the washer and dryer so we could have a bench to sit on to tie our shoes or wait on. However, I believe my dryer duct and electrical cord for the washer could reach it I did side-by-side. I like the look of a side-by-side with a counter over the washer and dryer, and perhaps if I upgrade to a tankless system, do a corner bench where the current traditional water tank is? We also have that big white cabinet next to the stairs to go into the kitchen which we could do something with. That is poorly put together and needs to be fixed.

Both powder rooms and laundry rooms add a ton of value to a home. I suggest you talk to a local realtor and see how these changes would impact your home value. My guess is that losing a bathroom will hurt your value, even in exchange for a laundry room so I would try to at least keep it as a powder room. But ask someone in your local real estate market to see.