What It Really Costs to Decorate a Luxury Formal Living Room

Out of the entire home, this room was the biggest challenge. The layout was awkward, the floor sat lower than the rest of the house, and the ceiling was uncomfortably low. Not exactly what you’d call a luxury space.

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But this room mattered to me. I pushed for it to be something special.

To get there, we had to rework the architecture before we could even start decorating. We moved a wall to improve the layout and opened up the ceiling to bring in height and light. We also tore out a dated, useless built-in cabinet. In its place, we designed a custom bar, and on the opposite side, made space for a piano—two elements that immediately elevated the function and mood of the room.

We designed a dramatic, beautiful space full of character and built to work for real life. There’s plenty of seating for entertaining. The ottoman doubles as a bench where you can kick your feet up and relax.

The TV above the fireplace is disguised as artwork, set inside a custom-made leather frame. And the oversized dimensional art with hidden lighting behind it? That piece makes the whole room sing.

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So how much does it cost to decorate a luxury formal living room like this? Here’s a breakdown:

1. Architectural Changes

• Wall removal and framing: $5,000–$8,000
  
  
• Ceiling raise and structural work: $10,000–$15,000
  
  
• Electrical (labor): $3,000–$5,000
  
  

Subtotal: $18,000–$28,000

2. Custom Features

• Custom built-in bar (cabinetry, countertops, finishes, lighting): $18,000–$22,000
  
  
• Piano nook (flooring, lighting, wall finish): $3,000–$5,000
  
  

Subtotal: $21,000–$27,000

3. Flooring and Wall Finishes

• Floor leveling and hardwood installation: $5,000–$7,000
  
  
• Wall and celing prepapration and paint: $4,000–$6,000
• Luxury wallpaper (material and installation): $10,000–$12,000
  
  

Subtotal: $19,000–$25,000

4. Furnishings and Decor

• Sofa, chairs, ottoman, accessories, custom drapery: $33,000–$38,000
  
  
• Decorative light fixtures: $10,000–$12,000
  
  
• Custom wool rug, dimensional artwork, mirror: $16,000–$22,000
  
  

Subtotal: $59,000–$72,000

5. Design and Project Management

• Design fees: $16,000–$19,000
  
  

Total Project Range:

$133,000–$171,000

Decorating a luxury formal living room - especially when you’re restructuring the space - requires a serious investment. But when it’s done right, the result isn’t just a beautiful room. It’s a room that finally makes sense in the home, one that feels elevated, functional, and completely intentional.

Got questions about how to approach your own formal living room? I’m always happy to talk about what’s worth the spend - and what’s not.

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