We got DD the fisher-price family dream dollhouse for her 2nd birthday. It's pretty big, but doesn't take up the whole room. And it worked out great because we just told other people to get her the furniture and stuff for all the rooms.
I just bought Reese the loving family dollhouse for Hanukkah. I know she will absolutely love it---she has a very small dollhouse now, and the furniture she plays with all the time---but it doesn't really fit in the house.
We have the Savannah Kidkraft dollhouse. It's tall, but narrow so it fits well against the wall in DD's room. Both she and DS enjoy playing with it. Family members have bought more of the accessories for birthdays so it's easy to build upon and keep updated and fun.
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