This is a nice-looking living room with smaller rug. Perhaps the key is to frame the rug with sofas / sofa and armchair combo / sofa and the window. And another trick is to fill up the room so the size doesn't look awkward.
I like the little day bed and the window and beat board walls. day bed on plywood base with built in table. we would put the long edge further back for under the bed storage space. I also would want to paint it like white or something.
A modern classic living room with white brick walls, color study 43