I shared a room with my sister, who is 8 years younger than me, when I was a kid from the time she was born. But it was really the only choice in our 3BR house with 4 kids (2 boy, 2 girl). For most of that time, it was annoying only in the way that sharing space with a sibling is annoying, and my parents did add 2 more bedrooms into the basement by the time I was in HS and really wanted my own space that did not have a Barbie dream house in it.
If you do not have any other choice in your current house, I would hope that your kids would understand.