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Sundae, she totally will need her own place. If she stays at home with two babies everyone will come to resent each other. She'll need her own space, her supporters will need their refuge. It's not like they're shipping her off to Australia.
As for your things, they're in somebody else's garage for an uncertain time in the future when you inherit/live alone in/are forced to move out/what? your parents house? (1) Putting them in your niece's flat and them getting used seems like a win all around to me. And are you sure everyone saw them as yours? or were they just for the next person to need them, the assumption being that that probably would be you? And if they are specifically yours, can't you look on it as a loan until such time as you need them? Often things don't last very well in storage. I'm sure you can find a tactful way to remind them that -whilst you don't begrudge her using them- you will eventually need them. Maybe buy her replacements for the small items each birthday and Christmas instead of an extravagant personal present... Or buy them for you instead of giving her a gift (2) Won't your parents leave what's already in the house/can't you have that?
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The most difficult thing is the decision to act, the rest is merely tenacity Amelia Earhart
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