Cost is a factor as well.

Unless you have an expensive, natural fiber laden wardrobe, its not necessary. Pretty much all clothing today has a style expiration date and lets face it, the material is cheap so theres no need for long term care. If your a collector though, maybe a cedar closet is a good idea. What are your plans for organizing? I love a well organized closet.

There is a cedar closet in the basement of the house we moved into 21 months ago that the previous owners built. I have seen this elsewhere too. It's true that closets in bedrooms are not commonly lined in cedar anymore, but apparently some people have one in another part of the house where you can put out of season or rarely worn items. But it is also true that the original purpose of cedar was to repel moths. While I think I have some sweaters that are part wool, this isn't a commonly used fiber anymore. That being said, you can do whatever suits you. :-) Just don't expect this to necessarily be a big selling point at time of resale.

Thanks for the comments. 21 years ago we had a closet added and they sold us on a cedar lined.  I wish I didn't have it because now I want to paint and refresh.  No smell anymore either.  It's out of the question to remove it so I guess I will just have to let it be.

Doesnt the smell return if you sand it?

The smell will return if lightly sanded. But it can also be painted over with a primer such as Kilz, as there are oils in cedar that can migrate through regular paint.

"I wish I didn't have it because now I want to paint and refresh. No smell anymore either."

How large is the closet? If most walls are obscured by clothes, it might not be worth the time and effort to paint it. And why regret this closet after more than 20 years? If you divide its cost by its number of years, I imagine you'll find you got your money's worth, no?

I guess my actual question is why closets are not lined anymore, the closets I see are painted. None are seen cedar lined.  Was it a fad 20 yrs ago?  I don't regret it but they do appear to have fallen out of favor or just style.

While the slight scent of cedar can be pleasant, having it on all your clothes can seem otherwise.

IF you have wool clothes -- coats, sweaters or even a wool blanket -- you put them in a hanging bag (with at least one side fabric as opposed to all plastic) and add cedar blocks/balls inside the bag.

(... and it does cost more than painted drywall.)