What about it you don't like? Is it the wood itself (you want another material, not wood) ? The stain? The knots? If the wood was much less knotty and more even, would you like it better? --

I don't like the idea of an inset period, whether it be drywall, wood, etc. It just looks off to me. I would rather have solid brick. I thought about covering the entire top part from the mantel up with mdf and trim and adding a regular, chunky mantel. I'm not sure if I can cover the inset temporarily with some other material.

HI -- I think the angled wood has to go for sure - such a seventies look ! Look for a tile that will go with the brick , something with lots of texture like a limestone or a ledge stone. Or add some glossy black large format granite tiles . Or black mirror . Or if you like the wood look , you could add a rich grained exotic wood like a Zebrano or ribbon mahogany or walnut , and run the grain horizontally.

If you don't like the inset idea maybe you could drywall the entire top part down to where you put your chunky mantle. In any case I would paint the wood trim on the outside of the brick to match your walls.

oh...this is the perfect place to hang a long tall piece of artwork!....just put some sheetrock over the wooden part if you don't like that, paint it the same color as your brick, add some lights to point towards the indention and hang a beautiful sculpture piece or a long canvas piece of art!!!

Ah, I like neither bricks nor inset. I like it super clean :) --

To me, the existing treatment looks cheap: thin brick veneer with cheap paneling. If it were my house, here's what I'd do (a picture's worth 1,000 words, and easier than trying to explain). Good luck.

Thank you for all the responses! I do like the idea of art, but since it's vaulted at the top, you'd still see part of that paneling. Thank you for that illustration too! Is the drywall sticking out from the timbers, even, or a little recessed?
I agree about the 70s look, but the condo was built in 1990! It must have been popular because I looked at quite a few that had this.
I haven't even moved in yet. Ideally, I'd like to use stacked stone all the way up, but I'm sure it will be pricy. I'll be looking for quotes by summer! This is a middle-of-the-road subdivision too, so I don't want to put myself out of the market.

How about cork? Cork floor tiles can look very rich and exotic while still warm ( there are so many beautiful styles) They are unique and since its a flooring system, it would be an east DIY project and cheap.

Think about filling it in with artificial stone veneers the add a bigger rustic mantle. Check out El Dorado stone for a very real look.

If you were to paint it a funky accent color, I think it could be very cool

With the off white walls and that pretty beige brick, Navy Blue would be a knockout.