Has anyone dealt with trying to set up a nursery area without having an actual nursery?

Our upstairs has our bedroom, which is normal size, plus a huge front room, part of which we planned to section off with walls to make a nursery, at least for a couple of years. My husband was in charge of making this happen and sort of dragged his feet on it, then the walls got folded into work a contractor was going to do to renovate our upstairs bathroom. This was nerve-wracking but bearable back when the work was going to start approximately next week, when I would theoretically have about five weeks before delivery.

However, on Friday we learned that due to some fetal growth issues, they may deliver me very soon, and almost certainly within 3-3.5 weeks. My husband decides there's just no way we can survive doing the bathroom renovation now. I agree with him, except that without the larger bathroom renovation, it's not really worth it to the contractor to spend the time to just put up the nursery walls. It looks like if we want walls from this guy, we'll just have to suck it up and have it done along with a full bathroom renovation at some point, maybe a month or two after the baby arrives. Is that a crazy thing to try?

So I am having a baby within the next three weeks. I have assorted baby furniture and other items in various stages of assembly in a pile in my home, and no walls for a nursery and no prospect of having walls until the baby is at least a couple of months old. I'd really prefer to have him sleeping in his own room by around six months.

I realize a lot of this may be hormones, but I am freaking out. Any suggestions on what I can do? Is it even worth it to get room dividers as a temporary solution just so there is a separate baby space? Should we just set up the furniture where the nursery would have been so at least there is a space in the larger room to change the baby/keep his clothes, etc.? We were planning to have the baby sleep in one of those cosleeper bassinet things in our bedroom for the first few months, so I guess we don't need a separate room for a crib right away.

In short, has anyone had to deal with a similar situation? And how did you do it? We're in the NYC area, so I'm tempted to just see if we can put up temporary walls if I can find a way to bring it up without my husband getting totally defensive about it.