What about putting in two vertical windows that mimic the dimensions of your double front door? You could put in some frosted glass for privacy. I would also consider a much larger wall sconce over the front door; it's currently too small in scale vs. the space above it.

The space is the shower to our jack and jill bathroom so windows will not work unless it is a faux window.

Not necessarily. If you don't want to do frosted glass, you could do a clerestory window at a height that won't compromise privacy. See clerestory window options in showers, below:

Why not treat it like an interior wall, and decorate it with a large metal object or something architectural?

An iron awning over the door, but in the empty space

A faux balcony with a faux window

Wooden architectural object placed on surface of empty space above your door

A small, covered porch over the deck would create a very welcoming entrance and give you some additional decorating opportunities.

enjoythejourney..that is exactly what we wanted to do but city setback codes will only allow us to go out 2 1/2 feet.

I apologize. I didn’t understand your setback restriction. (I still don’t actually :), however that’s not important). You might try simply drawing the eye away from the blank space. You could add some colourful gardens, a few chairs or pots and a welcome mat on your porch, replace your walkway with a more natural stone, with softer edges (flagstone or some such), add shutters (if that appeals to you) and/or paint your doors a more eye-catching colour (I’m not suggesting bright or bold, just some sort of colour). Sconces on either side of the door would also be nice, if you can manage that (my neighbour has run electrical behind his brick a few times to add lights and it’s not that difficult. You’d just need to research it or maybe hire it done.

30" is enough for a pretty awning as shown above or a pergola. It would make a world of difference.

I think a front porch with a roof line that mimics the second story would look good, and be a provide a nice entrance to your house.

I think the front porch idea is the best. You will love it when t is raining and will give you an inviting welcome to you and your guests.

From the original post:

"Our problem is our setback leaves us with only 2 1/2 feet to work with"

From 43 minutes ago:

"enjoythejourney..that is exactly what we wanted to do but city setback codes will only allow us to go out 2 1/2 feet."

Your current front "deck" is allowed under the setback code...so should any "covering" over it. A support column does not have to encroach into the setback...or use angled supports attached to the house. Setbacks usually refer to walls ie "actual structure" (like a post set into the ground), not the addition of a canopy-like shelter.

A faux window (with real glass fronting a mid-grey colour) would create balance - as would a clerestory (especially a triangular one). Find a significant carriage lantern to make a statement over the doors.

Staying within your original parameters of no window and a 2.5 ft setback... When I first looked at your picture I thought that space was like a blank canvas screaming for art. So, I would treat it as such. Clear it by replacing the light over the door with two on each side. Then decide if you want to make a statement in that space that tells the world who you are, or if you want to let that space continue the character of the house. Some of the other comments included suggestions. One suggested you decorate the space like an interior wall and hang something there. I was thinking of holiday decorations. It would have to be personal, reflecting family interests. Another person suggested you break up the space in a pattern and proportion to the lower part of that wall, the doorway. That would be a more conservative approach and may suit your personality better. It also may be better for resale, which may be of interest to you or not. I learned that a setback in my location did not include anything like a portico that doesn't come to the ground. If that was the case in your community, I think that would be an excellent solution if the slope follows the line of the roof overhead and is placed high.

If your restricted in doing a window or building out too far from the space, I would consider doing some white trim in a vertical, horizontal, diagonal or a combination pattern almost giving it a bit of a Craftsman touch.

a trellis with climbing vines or roses

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[(https://www.houzz.com/photos/casa-real-traditional-entry-phvw-vp~4930847)

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[(https://www.houzz.com/photos/chelsea-traditional-entry-london-phvw-vp~89054266)

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[(https://www.houzz.com/photos/williamsburg-village-renovation-craftsman-porch-dc-metro-phvw-vp~45739983)

I would suggest a black and whie striped awning over the door to include the colors of the roof and trim. On the soiid wall above this space, I would suggest a large, round wrought iron wreath or grille painted black to contrast fromthe tan siding.

I would change the color of the entire section from your door up to the blank space or veneer it with rock. The whole house is one color, which doesn’t differentiate the plains/shapes of the house at all.

Paint the top floor (not the blank space above the door- the rest of the second floor) a lighter shade of the brown, like maybe a sand color.