I hang everything so that I don't end up with wrinkles (I don't iron or steam anything). Only under layers, workout clothes, and pajamas go in drawers.

Those of you who keep stuff folded: are you able to avoid wrinkles?

I prefer most pieces hung up. Partially so I can see them, but partially as we have very little folded storage. Overall, storage space is a premium in our house.

I hang everything even my sweaters., so far nothing has been stretched out badly.

fold junky wear around the house tshirts/pants and some sweaters that I haven't hanging room,

Much easier when putting away
I bought a ton of the slim line hangers as well, you can fit more clothes in the same rod

I hang everything too. I'm the worst. It just makes it so much easier for me to see it and wear it. Something about folding and stacking just keeps me from seeing items. With sweaters, I assess just how delicate they are. If they are sturdy and will be in pretty constant rotation, I hang them like any other shirt, but being careful to position the hanger where the seams are on the shoulders. For more delicate sweaters, I hang them in the hanging/folded hybrid that Dana/Ironkurtin recommends or even just over the bar, with the arms supported. I also have those ultra slim velvet covered hangers, so they grip everything perfectly. One of my best closet investments ever.

I hang mine because I do not care for the fold marks.