Neither. It's the color of it rather than the size. The gray is clashing with your gray-toned wood. I'd get something with a little color in it, maybe pull some red from your front door.

Agreed, the rug clashes with the floor. Limit the gray and add one more color. Too much gray is dreary.
Regarding the living room rug, the front half of each seating piece should be ON the rug.

If I absolutely had to choose between the two, then I'd go with the first, but I agree with another reviewer- neither looks great against your floor. Some colour would be nice I think, both to break up all that grey and to add more interest. Maybe a Kilim rug that pulls some of the red from your door?

A few examples...

Often, when you have two spaces like that, it’s not only easier but also better looking to avoid trying to match. Seldom works successfully or looks a little uninspired. I agree that a rug with red in it would probably work very well.

Thank you for the replies. The red is from the outside of the door only and I only opened the door to get a good picture. ;) We do not plan on using red in the inside. We were leaning more toward yellow and gray. Should I choose a yellow rug with some gray in it? My husband seems to think we should have just a plain gray rug in the space. I am no good at decorating as you can prolly see from the rest of the items in the background. ;)
The 1st one may be a little to bold for us but maybe the other one?

In reply to felizlady. All the legs of my seating furniture r on the rug. I thought it was all on or just front on? Guess I could be wrong, we’ve only had the rug for about a week now.

@loves to decorate. I like those rugs too, thank you for the suggestions. Now have to convince my husband that we shouldn’t get a dark gray one. He’s not crazy about pattern, but I’m ready for something different than we’re not used to since we have a bran new house!! Thank you again

@loves to decorate. Could u please tell me where u found the 2nd and 3rd rug suggestions? I’ve been trying to look for them to check them out more and can’t seem to find them. Thank you so much!

@emfell, I found all of them on Pinterest when searching for 'yellow rugs'. Hope that helps, good luck!