I would be tempted to flip the dining room with the living room. The middle space has little natural light, which is great for reducing glare on the TV. I’d center the dining table under the tray ceiling.

Here’s a rough idea for the layout.

If you own the apartment, I’d replace the boob lights for ones with organic texture.

I think you need some art on the wall in the dining area. Do you have room for end tables next to the sectional? Add lamps there (floor lamp if not room for end tables). Lower the three frames to the left of the Christmas tree. They need to relate to the furniture and they’re a little high.

I think that the arrangement you have is best (although I'm sure it has a little more breathing room without the Christmas tree, heh). You might want a small coffee table in the living area. But really, what will help the areas come together is art. Large art centered over the couch -- maybe the centering is ok without the tree, but the scale of the little prints is insufficient -- and another piece to help define the dining area together with the table and chairs. You might get some mileage out of colorful seat cushions or a runner, to help break up the black heap of furniture + fridge right there too. Let me see if I can Photoshop something for you.

I suspect a little lighting could help too -- maybe a table lamp on an end table where the tree is, and maybe a hanging fixture over the table in place of the current flushmount (or if it's not yours to change, then a floor lamp in the area to give you more options).

Turn the sectional and float it off the window a foot or so, so that it faces the kitchen, opens up the room and allows the softness and texture of the rug and pillows to show. Extend the brackets on the drapery rods out so you can open the drapes fully and let in light and a view of the sky. If privacy is an issue during the day, you may want to place tall potted plants outside the window to create an organic screen. Add a coffee table, end table, lamp and larger artwork above the sectional.

The Christmas tree can go between the sectional and dining table, then replaced with a tall plant or other organic element after Christmas.

Turn the dining table so the short end of the table is closer to the wall and two chairs on each side. The buffet may fit on the wall next to the refrigerator with artwork above. You may also want to move your rug under the dining table and get a larger one for the living area, or layer a larger rug under the one you have now.

Because the vacuum is standing in front of the door and cereal on top of the refrigerator, it suggests storage may be an issue. If so, use your closets wisely, add shelves for pantry overflow if necessary or get a more shallow storage piece where the buffet is now. You could also consider a small kitchen island for additional work surface and storage, including your trash can.

The art, rug(s), furniture pieces, woven blinds, etc. are all opportunities to bring in organic cues with warm woods, natural materials and textures.

You might consider getting rid of the sectional in favor of apartment sized furniture. This really might help the space flow better. A sofa facing the TV and then a chair flanking either side of the sofa facing the TV as well. See the two images below for an idea on a sofa and some chairs.

Manhattan Color and Light · More Info

White & Bright · More Info