I would rather a sheet rocked ceiling. That black is oppressive to me. I would define one area as the TV space. With a sofa and two comfortable chairs. Get a low pile area rug for that space. Leave the remaining space for the kids to play.

I'm not a fan of brick in the basement. Add fun posters and containers for the kids' things. It will look much more homey.

Find a sectional that will fit down there with an area rug & put up a TV. Behind it you can put down a foam mat for your workout equipment. It's a nice space & will a great space for you & the kids.

Below are some of our basement and media room designs that we have done for clients. Please note the furniture, layout, and other decor used.

Luxe Living in Zionsville · More Info

Luxe Living in Zionsville · More Info

A Timeless Silhouette - Media Room · More Info

Home Is Where The "Hart" Is · More Info

Home Is Where The "Hart" Is · More Info

Wouldn't a sheet rock ceiling give a perception of a low basement? Agree that the black color isn't the best and we'll probably repaint it. What color would go well with the

How low is the ceiling in your basement? If you are keeping the open ceiling then I like the black. It's a BIG job to paint it. A different color on the walls would warm up the space. Here's my basement. We have a tv space with kids stuff behind this area. Our workout equipment is on the other side of the stairs. Our ceilings are 8ft with 7ft soffits.

I would not use the budget for bricks...
paint the whole space a light color. Beige? Or white.
I’d try to invest in the flooring with whatever budget is left. Maybe you an DIY remove the tile to save on labor...
add rugs, furniture and light bright decor to keep an open feel

Add some family fun elements like a beverage frig, popcorn machine, game table

@User Interesting idea on floating vinyl on the floor. Does that damage the tile? One of the contractors told us that removing the tile is a bigger and expensive undertaking. Not sure if the tile can be painted on as I'm not sure what kind of tile it is.

No faux bricks. If you have the budget spend it on rugs and furnishings to divide the space into zones. Center of the room can be a big, family-friendly sectional anchored on a rug or rug tiles. Behind the sectional, set up your exercise equipment and floor covering you might want for that. That way you can watch TV while you exercise.

Basement Pool Room/Teen Hangout · More Info

Use a long, low storage unit with cubbies on one side of the sectional to separate play area for your children's equipment and toy storage. On the other side of the sectional, add a game or eating table and chairs, also anchored on a rug. Ikea shelving for media and games can house your TV.

As budget allows, sheetrock ceiling for sound management. Add a counter and stools for TV game nights. There's lots you can do to organize the space as your family grows up.

Family Room, Home Theater and Bar · More Info

love the open ceilings. That's what I wanted but we had to insulate so we didn't hear the slightest noise from above. We added some brick accent walls using panels at Home Depot. They were pretty inexpensive. We also warmed the floor with carpet squares which were also inexpensive. Here are some pictures.

Dusty Cohen I'm not an expert in flooring. I just know that some people can and do cover up certain types of flooring all the time. here's one article about it. sorry I can't be more helpful than that. just wanted to give you that idea to look into. you'll definitely save money by not having to demo and smooth out the old floor, that can be a lot of work. if you choose a vinyl product to go over it, it might be within your budget.

whether or not it damages the original floor has to do with installation (like if its glued down or not). but it sounds like you don't like the existing floor, so who cares if it gets damaged?

Start by painting the walls a warmer white that coordinates with the floor. Choose a pale shade of the lightest pattern in the tiles. I must say I like Trish Walter's carpet tiles, so consider something like that to define separate zones in this large space. Flor makes them, and they're easy to put together. If there's dampness or water problem, carpet tiles are easy to replace.

I'm not a fan of faux stone. But Trish's weathered wall looks great. That said, using your limited budget to get a great sofa and media and storage pieces for your TV, kids' toys, exercise equipment will give you a quick payoff.

The black ceiling makes the basement appear odd. Would suggest adding a gyp. board ceiling or painting the existing joists white. That should brighten up the room.

@Norwood Architects doesn't a lighter colored ceiling make it harder to maintain with the spider webs being more

@housegal200 I like those color combinations. What'd you suggest for ceiling

Leave it--it has a kind of industrial look. Light carpet tiles and wall paint that coordinate with the existing flooring will greatly lighten the space. The carpet tiles and a large sectional along with low media pieces, cubby bookshelves for the kids can be used to divide the space into attractive zones.

You can 100% lay vinyl planks on top of that tile.

Simanski one of the posters mentioned getting the tile painted. Is that possible with that tile and is it less of an undertaking than laying vinyl planks?

@housegal200 leave the color of the ceiling or change it to a lighter color with lighter colored walls and floor?

You could paint it, but to me that seams like a waste of time. I'm not sure how good that would wear.

Dusty Cohen we can't tell you if you really can paint the tile or not because you have not told us what kind of tile it is.

I do think overlaying a vinyl plank floor would look and wear way better. it would be easier than painting too.

I also like other people's suggestions of carpet tiles, which is the easiest of all of the options. Flor is expensive, but there are other brands.

but if you are still curious about painting, here are some deets: if your current tile feels plasticky (like vinyl or linoleum), then no, you can't paint it.

if it's stone/ceramic, then possibly yes.* however, it could be prone to chipping, hence my suggestion to also cover with a huge rug. and painting is a lot of work -- you need to clean the hell out of it with major chemicals, prime it, and use a special kind of paint.

*caveat: if it's high polish, paint will not adhere well at all.

IMO, no need to paint ceiling or floor. Also, if you have dampness in the basement, floor paint may start to peel. Put your budget into great pieces--sectional, media center, storage shelves, great carpet floor tiles (btw, they don't stick to the floor but lift up like a regular area rug) and a mix of layered industrial lighting--floor, table, ceiling lights. Add travel or movie posters in great colors.

Love the light strands on this--way easier than painting!

Please don't paint walls gray--too gloomy. Pick up the lightest tan from floors, get warm tan floor carpet tiles and you'll have a much warmer space.