I am remodeling/repairing my upstairs. I am at a loss as to what floor covering I should use.

Because of allergies and dogs I wanted to use porcelain tile upstairs but I have been told that an upstairs cannot use tile over the whole area. Just bathrooms. The carpet that was up there was destroyed by dogs and teenagers so I did not want to get carpet again. Although that would have been my first choice. I need something strong and water resitant. Hardwood is out of the question and laminate is not water resistant. I really don't want to do linoleum because it would not be very wear resitant and it could devalue my home. Someone has suggested Permastone. Does anyone know anything about it? I am open to any suggestions. However I cannot get rid of the teenagers or the dogs. the dogs are small and sometimes don't want to go downstairs to go outside so they use the carpet. UGH!!