That's definitely not it. My wife has this issue. We have drawers and drawers, all empty - more than enough storage space. We also desperately need whatever baskets the clean clothes are occupying.
I once suggested that she make a rule for herself: fold every load before you add the next one. She just laughed.
I've even offered to take over the laundry 100%. I have no problem with that - I may just need to give her some of my things in return. (I do most of the dishes.) She does not want to do this, idk why