Is privacy your main concern? How often will you eat in the dining room? Daily or just on special occassions? I think the fence is far more disconcerting than having someone see in the windows. I'd put a nice big tall floor plant in there so that it distracts from the fence.

Drapes or roman shades. Sheers under drapes if you want to block the view all the time.

Thanks!! You are so right! Only occasionally mostly holidays. I am thinking I will plant something to obscure the fence and the view. Thanks!!!

It doesn't look like you can see into the neighbor's windows unless you stand on a chair or ladder and their windows look to be pretty high too. Of course, you'll want to confirm but you may not need much privacy for this room. Because you love the natural light, you can hang drapes on a rod high above the top and just skim the windows on the sides.

The sample photo shows a fence where one neighbor got the smooth, clean side and the other got the posts. Unless you have a pool, see if you can get the smooth side or consider finishing at least a section of the fence outside the window to cover the posts. If you have a pool, the horizontal boards can be used to scale the fence more easily and may be against code.

I love a pretty view outside a dining area, you can use landscaping on the fence to create an attractive focal point.

Normally the owner of the fence gets the post side.

You can use sheers on the large lower windows. And leave the arches clear. Or do shades on the lowers; and you would not have to lower the shades all the way to have the privacy you want.

Like this... 👇 — Especially with your fence - just using some type of shades like this should block any views in. You won’t have to pull the shades all the way down.

Or alternatively, sheers as I mentioned. But at night is the time when anyone would be more likely to be able to see into your room. Not so much in the daytime.

I've honestly never been concerned about having a cedar fence, posts and all as my view. Planting something would not not only breakup the fence line but also add privacy. A broad leaf evergreen would be nice. Also, do you know yet the home floorplan next to you and how it will be positioned relative to you. Good builders should plan to avoid having people look directly into each others windows.
You could do some semi sheer roller shades on the rectangular portion and a tall plant (like rubber tree or fiddle leaf fig). I personally don't like blinds in any application. That's just me.

Not sure you style but found these online which should help you see the diff options. Not a fan if pleated shades but I included them anyway. I included these for their shape as opposed to fabric and print. (Some of the styles are a bit formal, but you can prob recreate with simple sheers. )

And these

You could also consider various window film options.

You have a landscape opportunity along the fence. You might not even want to close the curtains. Except at night, just because the light from their window might bug you.

I had no window coverings in my dining room which had two floor to almost ceiling windows. I loved the light, and it provided an open, airy feeling to the room.

Investigate your window warranty before placing any film. My warranty would be voided if any film was used.

No window film for sure if you are concerned with eat and uv then solar shades are a much beeter choice . Hard to know what direction you face so I have no clue as to that part. The windows across the street look to be on the 2nd floor so honestly how much time do youn think they will be hanging out there trying to see what you are having for dinner . I wouldl not do anything unless as mentioned you have heat issues.That space looks small what is the size ?

I'd do draperies mounted above the window with bottom up/top down shades on the bottom windows so you can pull them up to visually cover the fence. I'd also focus on the outside by adding some landscaping that will help cover and soften the fence. That just takes a little more time for things to grow before you see results.

Enjoy the new home when it's done.

Thank you for all the amazing thoughts and ideas. This is our first time building a house. This was one of the spec homes but similar floor plan. The lot next to us has not yet been sold but thee will be a house eventually. I agree, their plan is making sure you aren’t looking in your neighbors window.

Landscaping a beautiful trellis with a honeysuckle or Arbor vitae.

Love the trellis idea with honeysuckle. I have jasmine climbers on a very pretty trellis for privacy.

Here's a window treatment that will be great in your space. The valance top can be even with the wall before the ceiling angle. The curtain panels should cover both sides which will allow you the maximum natural light. White sheers under the window treatment adds additional privacy, if you feel the need for it.

Don't skimp on the treatment. The curtain panels should be 2-1/2 times the width of the wall, lined and weighted, so the gathered panels when opened will be lush and luxurious. It will be gorgeous!

Thanks all!