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My kids are 22 months apart, and my eldest had lost interest in many of "his" toys by the time his sister was interested in them. Once she came along, we started to emphasize communal toys like blocks, Magna-tiles, etc.

If a particular toy caused intense attachment and fights, then we would move it out of rotation for a while so it wasn't an issue. We discovered that our son was a lot more willing to share the toys he was not as attached to!

@Cherrybee: We put a lot of stuff in our living room as our youngest got older...

But honestly, none of this was an issue for a long time! She wasn't able to get to any of his toys before she could crawl... and by then, we had changed up our toys to emphasize building toys (which kept our son occupied for hours). The biggest issue for us was that she kept destroying the towers he would build! But that only happened after a year or so, so there was plenty of time to adjust the kids!!

@Cherrybee: so far our biggest problem is C wants G's things- like her pacifier and blankets (since she's 2.5 weeks old and that's all she has!). Then she says things like "it's MYYYY pacifier!" Yet we talk about how when G gets bigger she will get to share her toys with her little sister and C will teach G how to use them. No idea how it will go but like others said, for now the baby can't use anything anyway.

Most of the toys are in the living room since C's bedroom is so small anyway.

@T.H.O.U.: we do the same

Mine are only 20 months apart so they like to play with a lot of the same things. They each have their special bedtime friends and that's it. The rest they do have to share. We have always had that expectation and they do really well with it. The toys live in the playrooms and not in their rooms, so maybe that helps. Books are just not an issue at all. Most of the time we all read together.