I think I would put a double rod on the right side, and put long things over the stairwell. Replacing both dressers with floor to ceiling shelves/drawers would really add to your usable space, and give you flexibility to maximize your storage.

Here's what I did in the closet in our bedroom, which started out having wire shelves (which I despise). We live in the midwest - these are Dakota Closets from Menards. Easy to assemble, and I like being able to add drawers anywhere.

Before (listing photo):

After:

These are in progress photos - I've since added more drawers on the right, and more shelves on the left. (and the new LED light fixture is amazing)

Brilliant! Double rods on the right is a great idea. With the new wall shelves, we really shouldn't need the upper shelves that are on the right (south) wall. Your closet looks great!

Agree on replacing wood dresser with shelves but currently don't have buy-in from DH. Getting the first set of shelves up might convince him. This will be a project done in stages anyway.

Since you're already considering the Elfa system (it's great!), have you taken the room dimensions to The Container Store and have a closet specialist do a layout for you to consider? I just finished doing my pantry with Elfa and used 16" shelves on main wall and 12" shelves on the sides, it is so versatile! You can incorporate double hanging, drawers and shelves in your space!

When I added a second rod in a previous house (wooden rod attached to boards, just like yours), I didn't take down the boards supporting the rods, I just used scrap wood to make a new rod support.

This is hubby's closet in our old house. I raised the clothes rod and put shelves underneath, where they are easier to reach.

I didn't take a picture of my Elfa closets when they were installed, but here is my pantry. In the closets I combine the rods, double rods, shelves, drawers and shoe storage to maximize the space. Definitely go to the store and work with one of their designer. Take the design home and think about the layout, make any necessary changes and then place the order.

I had also done Elfa closets in my previous house, so I knew how to use the system to maximize storage. I still went to the store, but told them exactly what components I wanted and where to place them.

Is there anyway to put the door on the 45" wall you have marked? If yes you would end up with a full wall of hanging and then I would do drawers or shelves into the cubbie by the stairs.

I love elfa and have done some odd closets with it. If you are not in a hurry, wait until August when The Container Store has their 25% off shelving sale, or next winter for the 30% off all elfa (or is it 33%?) If you have a store nearby you can use their services though I find some of them kind of follow an elfa layout, and spaces like yours might need some more creativity. You can always tweak what they design for you, especially I think if you use the online service.

Lorraine, there is no way to move the door to another wall. The 45" wall is an exterior wall. The opposite wall backs to a chimney. In an idea world we would move the door south a bit so it's more centered on the closet. That would allow us to put Elfa drawers or a closet rod on the left side of the doorway. DH is never going to agree to that level of alteration.

Thanks all for the Elfa suggestions. I've already built an Elfa pantry and one Elfa closet. I will probably ask my local store for a proposal. But based on past experiences with Elfa staff, I think I'll get better ideas here. :)