Install a skylight. If your budget allows, installing a skylight illuminates a room, flooding it with natural light and making it seem larger. For the tighter wallet, infuse more light into a space using lamps with maximum-wattage daylight bulbs. By mounting curtain rods beyond any window’s width, you'll be able to pull the window treatment open and far enough back -- skimming the window's edges -- so as not to block any of the room’s essential daylight.
Opt for size-appropriate furniture to heighten a room with a low ceiling. Choosing small-scale furnishings, such as a low profile sofa in the living room or a Japanese platform bed for the sleeping quarters creates the feeling of height and spaciousness.
Widen a narrow space by placing the largest furnishings, like the bed or couch, against the shorter wall. This visual trick works by squaring up the remaining floor area, giving the impression of breadth rather than hallway-like length.
Add an interesting rug to define the room. Keep the decorative throw about one foot from each wall so you don't make the room appear cramped or the rug seem lost. Pulling furniture away from the walls and placing all furniture feet atop the carpet makes a long space appear less leggy and instills cozy ambiance.
If the room’s length allows, break the space in two, using a chair or love seat as a half wall. A long bedroom might boast a sitting area across from the bed. The slender family room could have a cozy reading nook or breakfast bar on one well-lit end.
Provide further airiness in a tight space through scant decor. Don’t fill the room with clutter. Keep furnishings basic and limit ornaments to a few key pieces. Incorporate one tall, thin vase; an eye-catching, elegant lamp on a simplistic teak table; and a Zen painting about the small-scale furniture to welcome relaxation and create soul-soothing atmosphere.