IMO why not fake grass done right it can look awesome then just plants in those planters which of course were done wrong and for sure not good for the trees but now IMO you will need to leave them as they are. Waht do you want to use the space for? I dont like patios but sometimes they are the answer. You need to figure out what you will use the space for not just what you will not use it for. I would do the plantings along the side but before that power wash that fence and the planter . They are a mess then some good waterproofing to keep theose looking much nicer . Then add some seating and a nice large coffee table and use the space for before and after dinner entertaing . If outdoor dining is the plan then no fake grass

Pavers would look great in your yard and are so low maintenance! You could replace your planter with a coordinating block one with low maintenance, low water use plants. not a fan of the two Italian cypress in your planter but you may feel differently.

A less expensive solution would be rock/gravel mulch. A lot of people don't like landscape fabric but its done a great job saving us from weeding for the last six years under our rock mulch.

whichever way you go some decorative pots with easy low care succulents would liven up the look.

So much potential! I would spend some time goggling ”small yard no grass” so see what you like - but i think you can have a lot of hardsurfacing if you some larger containers with plants to add texture and life - i know you said no fire pit so this is just an example - i think you can def create a little oasis backt there

I have a small yard and created a sort of Zen garden. I laid out benderboard for a lawn with curves, added a dry winding streambed with rock, and used mulch for the rest of the area with flowering plants, stepping stones, and covered the fence in flowering vines.

Use interesting freatures to draw the eye down to the ground and away from the neigboring house and fencing. Today I would have a fake lawn installed instead of sod.

My yard is shown...some plants are covered for the freeze. The vines have grown on the cyclone fence since this photo. pavers are rubber pavers from Home Depot and are nice and soft underfoot. We don't have a back yard so the front is our play area and you can see the patio with seating and a green sunshade.

Search Houzz for Zen garden and get lots of ideas. The great part is that this style can be achieved on any budget.

The fern in the foreground is in the background next to the tree trunk in the second photo.

Google “Charleston courtyard gardens.” Inspiration!

#1 — what is your idea of ”budget friendly”?

#2— what do want to use the yard for? Entertaining? Children? Pet friendly? , etc.

#3— what is your style? I assume you want drought friendly, usually low maintenance.

I would start by hiring a landscape designer, not an architect, to draw up plans that you can either do all at once or in stages depending upon your finances.

Here are a few suggestions:

The use of a pre-emergent herbicide in February will negate the need to weed if you keep the mulch.