Dancing is great exercise and it relieves tension for many people. When the family is just hanging around the house with nothing to do, get them up and on their feet by using dance and dress up games that everyone can enjoy. All you need is your old record collection and some old clothes or costumes that you have around the house. The idea is for everyone to have fun while using their imaginations.
Everyone knows how to play a traditional game of musical chairs. However, you can make the game more interesting by including dress-up and dance in the game. Set up chairs around in a circle. Beside each chair place a box of costume pieces. When the music plays each person must dance to get to the next chair. When they get to the next chair they must put on a costume piece from the box before they can sit down or progress to the next chair before the music stops. Don't forget to remove a chair each time the music stops until there is one chair left and the winner sits in it.
Divide the family members or friends up into two or more groups. Provide each group with costumes and/or accessories to dress in. Give each group 30 minutes to come up with their own group dance that tells a story. When the 30 minutes is up each group must perform the dance for the other groups and you can judge which dance is the best.
Make your own 'Dancing With the Stars' game by dividing everyone up into partners and having them select their own dress-up wardrobes from things around the house. Then, without any practice whatsoever, call out a dance type and play music for each couple to dance to. The fun is in everyone making up the steps as they go along and trying to convince everyone else that they know what they are doing. The couple most successful at this wins. Make your own mirror ball trophy for the winners out of cardboard and some glitter spray paint, as desired.
If you have music and clothes from many eras around the house, make a game that includes both elements. Have everyone line up and place boxes of the clothes in front of the participants -- far enough out of reach so that they have to run to the boxes to get the clothes. Then play some music from any era, such as the '70s, and have the participants run to dress up like someone in the '70s and do a disco dance back at their place in line. Add a timer to the game so that they have to hurry and anyone that does not accomplish dressing and dancing in an allotted amount of time is out.