Nursery room

Do you all guys have a nursery room for your baby. If not what do u have. I live in Mass, our rent is 1800$ for one bedroom. If we need to move in 2bed it might be about 2500$. I don't wanna move now cuz i will lose my state tuition in Mass and harder to make it to school cuz i live next to campus. I have 2 years left to be graduate and a baby coming up in may 25th. Only have one bedroom that is 1500sq ft! Hubby think baby don't need a room until it turn 3! Any advice or idea ?