What should we do with the extra room?

My husband and I have two children aged 3 and 1. We have just bought our first house! Downstairs we have an extra room between the living room and the kitchen which we disagree on what to do with, so I'm curious to see other people's opinions.

I want to turn it into a playroom. The children are small and the bedrooms are upstairs, so they have to play downstairs where I am all day and that room is perfect as a playroom, since I can see them from both the living room and the kitchen. Having it as a playroom also allow us to have a proper living room, otherwise we'd store the toys in the living room and I prefer not to do that.

My husband wants to turn it into a dining room. Our kitchen is very small and only has room for a table with four chairs. Perfect for our family, but not so great if we have guests over. However, we very rarely have guests over. My husband says it's because we don't have room for it.

I think it's better to have the room for something that will be used every day, a playroom, rather than a room with a table and chairs that we'll not use so much. I think we can solve it another way the few times we have guests over. He grew up having a dining room, I did not, so that might affect my opinion.

What do you think?

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