Family closets are usually used by large families but you don't have to have five or more kids to benefit from a family closet. Heck, you don't even need to have a kid to enjoy the ease of keeping all the clean laundry in one place.
Our family is made up of two parents and two children (and two dogs and a cat). I refuse to carry clean laundry up the stairs and distribute clean clothes to several locations just for them to get dirty and need to be washed again. I can't justify that effort when I don't enjoy it and when there is an easier option, so we've set up our laundry room-adjacent family closet in a way that makes more sense.
It's not magazine-pretty but I love it!
Here's how the closet works: the clothes are hanging on a hand rail hung from the ceiling with rope. I added some screws on the ends (perpendicular to the rail) to keep the hangers from sliding off.
The basket of coats, jackets, hats and gloves will only be on that chair during the cold seasons. When it warms up they'll go out into the shed (in a tub with a lid) and our swimming stuff will go in that spot.
I always keep a tub easily accessible for outgrown clothes to donate. Tossing clothes into the tub here and there helps keep the clutter down, plus it makes getting ready for a clothing swap much simpler.
We also have a reading nook in the family closet because you have to utilize all the space when your house is 700 square feet.
It's a little odd, but it works well for us — and is a huge timesaver for me!