You don't necessarily need a lot of space to sew. Right now, I live in a tiny attic apartment in Granada, Spain, and I manage just fine. The key is smart storage solutions as well as accepting to spend an additional 5 min. before and after your sewing session to set-up and put away your gear.
1) Pick a cupboard or a section of your closet. This will be your "sewing cupboard". In my case, my low kitchen cupboard was always a bit inconvenient for food stuff. Also, it was close to a power outlet for my sewing machine, and offered a lot of light from the window.
Top shelf: sewing supplies, tracing paper, and iron.
Bottom shelf: sewing machine, pedal and patterns.
Bottom shelf: sewing machine, pedal and patterns.
When visitors come, simply shut cupboard door!
2) Set up your ironing board close to your sewing machine and power outlet.
When you are done, simply tuck away your ironing board behind a door...
and hang your work-in-progress behind that door using a skirt hanger.
3) For folks who don't have enough table space, remember that a couch makes for a great pin board...
Important tip: set up your sewing machine close to the fridge so you can easily reach for snacks.
There you go! When everything is tucked away, no one will guess your kitchen is in fact a secret sewing lab!