The dollhouse started life as a shelf unit that I found at Goodwill for $5. I forgot to take a "before" picture, but you can see it in progress here. The best thing about DIY (besides saving money) was that I painted it to match Lydia's new room (pictures of that coming soon). I added a few dimensional details like a scalloped roof and windows on the outside. The roof was made from the large tongue depressor size popsicle sticks! We cut the rounded parts off both ends and glued them in rows on the roof. Total price $2.
The furniture is from the Fischer Price Loving Familydollhouse line. They are plastic, so Lydia can really play with (drop, step on, throw, etc.) them without damage. Plus, Loving Family has apparently existed for decades, so there are tons of different styles of furniture and accessories out there. I found most of her furniture on eBay so I was able to save money and space by only buying the parts that would fit in this tall and skinny dollhouse.
The best complement that I got on Christmas was that Lydia would actually take time away from the super amazing rocket toy to play with her dollhouse.