Steps Double as Seating

• Living rooms might be sunken for a variety of reasons, but the steps leading down to the room can be used for more than just a way to get to another level of the house. Install custom upholstered pads that fit onto the steps to create a banquette-like seating area. If you are operating on a tight budget, simply purchase some large pillows or sew your own and place them along the perimeter of your sunken living room. Guests can lounge against the floor or steps, which results in an intimate conversation area.
  
  

Create a Cozy Vibe

• Accentuate the fact that your living room is sunken by choosing dark, sumptuous materials for your furniture upholstery and flooring. Make the area cozy and inviting by covering your couch in leather and placing a furry throw rug on the floor. As contrast to this comfy area, paint the walls a light color and install wall sconces that reflect light onto the ceiling instead of using harsh direct lighting.
  
  

Retro Furnishings

• Take cues from retro 1960s and '70s furniture and choose pieces that are solid and heavy and emphasize the fact that the space is recessed. Look for a sofa, chairs and coffee table that sit low to the floor but aren't too bulky. If you prefer a minimal and modern look, mid-century modern-style wood furniture helps lighten the mood of a sunken living space.
  
  

Optional Railing

• If your living room floor is deeply sunken, you might consider installing railing along these steps to ensure safety or to add a decorative touch. Depending on your style, you can choose from ornate brass or wrought iron railings or opt for minimal and modern stainless steel railings with thin wires that almost seem to disappear.