We study a driven-dissipative model of spins one-half (qubits) on a lattice with nearest-neighbor interactions. Focusing on the role of spatially extended spin-spin correlations in determining the phases of the system, we characterize the spatial structure of the correlations in the steady state, as well as their temporal dynamics. In dimension one we use essentially exact matrix-product-operator simulations on large systems, and pushing these calculations to dimension two, we obtain accurate results on small cylinders. We also employ an approximation scheme based on solving the dynamics of the mean field dressed by the feedback of quantum fluctuations at leading order. This approach allows us to study the effect of correlations in large lattices with over one hundred thousand spins, as the spatial dimension is increased up to five. In dimension two and higher we find two new states that are stabilized by quantum correlations and do not exist in the mean-field limit of the model. One of these is a steady state with mean magnetization values that lie between the two bistable mean-field values and whose correlation functions have properties reminiscent of both. The correlation length of the new phase diverges at a critical point, beyond which we find emerging a new limit cycle state with the magnetization and correlators oscillating periodically in time.