Get a dehumidifier -- it sucks the wetness out of the air (and the clothes) in a relatively short time period, and will help with the mold and dampness as well. We don't dry my husband's good shirts (because they shrink), and just hang them up with the dehumidifier running right in front of them -- they're usually dry later that night or by the next morning.

at the VERY least, leave the closet door OPEN when clothes are in there. Air needs to circulate around.

A stand of some sort you could use as a hanging bar, to hang hangers on, would be good if it folds--it might take less space than a clothes horse..

Or hang them over the shower-curtain rod, if you have one.

Instead of spending another $1.50 in my complex's laundry room to dry my clothes, I always bring them after washing into my bathroom and hang them from hangers on the shower rod. My mom does this at home and it seems to work well. I even made a clothesline of sorts by stringing some ribbon from a couple door knobs to dry socks and smaller items.

It is only the two of you, can't be that much laundry. When there were 5 of us and the washer and dryer were both $1 each. I spent the money to dry towels and jeans but everything else air dried.

Laundry day was any curtain rod available, the back of a kitchen chair holds three shirt, shower rods hold a lot and life goes on.

I did it for so long quarters were gold in my eyes. I have had a washer and dryer for 2 years now. I still catch myself giving a clerk two dimes and a nickle instead of a quarter. I have finally stopped the "wash load is done I need to bring hangers/find quarters" thing. LOL

The living room curtain rod is a great place. It might not be what you want in your first place but it is what you have and it only takes a few hours.

i got a tension mount drying pole from target.com (i've also seen them on amazon.com). it can hold at least 18 hangers (i.e with the wet clothes on the hangers) and i hang small items on the arms above the hangers. it has a much smaller "footprint" than a normal drying horse, and i find it attractive-looking enough to just leave it up all the time and hang plants on it when not in use for drying clothes. the specs say it is 9.5 feet tall, but you can leave a segment of the pole out and reduce the height.

Does anyone have suggestions for preventing sheets from wadding up in the dryer?