V.B.
I would highly suggest whatever you do to avoid carpet.
Carpet stains easily and after awhile starts to have its own smell. If you or anyone in your family have allergies even more the reason to avoid...it is also not good for tots potty training or inside pets.
We lived in a town home that had large creamic tile and it was the best. The materials cost almost the same as carpet except it will take more man hours to lay down. The upside is in the long run you will be less likely to have to be replacing it again like carpet.