Here's our closet. Do you see what we did? We installed a second rod half way down. You can buy a closet rod at Lowe's for about $10-$15. They're adjustable so you don't need to measure or anything. It took about 10 minutes to install and we essentially doubled our hanging closet space in this closet.
So if you're yearning for more closet space - see if adding another rod will do the trick. I think it only works for us because the closet is pretty tall to begin with. I'm not sure how high "more modern" house closets are. This is also beneficial in a kids' room - if they share or if they are just a fashion diva and have way too many clothes.