I do not allow it (or jumping on furniture or screaming or wrestling--I know, I'm soooo horrible and crushing to their spirits) upstairs. Downstairs in the playroom, they can do all three or whatever they want as long as they follow our general rules of no hitting without consent, ect.) Tge playroom is basically wide open space and old crappy furniture no one cares about. Most of their legos are in their rooms or in the work area upstairs (and they've learned real quick to keep them off the playroom floor when they've stepped on them!).
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I don't think it's bad or wrong to set rules that in shared space there are some fun things that we don't do out of respect for the type of space it is and other/different people's sanity. (the kitchen and office are upstairs, as well as my bedroom--I like quiet, and DH needs to not be disturbed while he's working. If anyone adult or child wants to run around and scream--and everyone in our family wants to sometimes--we go downstairs where it's muffled and the door can be closed and is a safe spot to do it)
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If I lived in an apartment or smaller house, I'd probably make the same "quiet space" rule for any space but their bedrooms, and not feel the least bit guilty about it. Most of life is that way!
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However, it's probably unrealistic to think that you're not going to constantly remind a toddler/preschooler of the rules, and with some kids' personalities they're just louder and it will take time for them to learn to moderate. I have two very LOUD BOISTEROUS children (and one quiet one) and it's just now that they are almost 9 and 10 that I just have to do a hand signal like turning down the volume for them to instantly settle to 'inside voice'. You just have to be willing to reinforce boundaries and rules, you're going to have to for awhile. For us, it was worth the annoyance; if I was a different person who didn't need some non-rambunctious space I don't know that I would have bothered.