Hang a mirror with a built-in shelf and hooks to the wall adjacent to the front door. This will give you a place to hang your coat and place your keys without taking up valuable floor space.
Position two matching couches in the living room across from each other. Since the house usually opens up to a living room, the two horizontal bars of the opposing couches will create the illusion of a bigger space. Place a coffee table between them.
Install wood paneling around the living room, dining room and bathrooms. You can use flooring to ceiling paneling or just beadboard. This will give your stucco bungalow a more traditional and natural appearance rather effortlessly.
Paint exposed sections of wall light chocolate, mint green, sky blue or other colors that evoke nature.
Select a round table around 42 inches in diameter for the dining room. This won't take up as much space, but will still seat four people comfortably. The round table keeps to the informal, relaxing style inherent to the bungalow.
Whitewash the walls of the kitchen or paint them a pastel shade to give the kitchen a light and airy feeling and to enhance the sense of space. Since bungalow kitchens have lots of built-ins and very little space, keep all furniture out of this room, save for a couple of stools.