Above the couch? A giant bulletin board and pin up your little ones masterpieces. Or paint the wall with magnetic paint to also be able to hang up their artwork.

1. I'd hang the four framed pieces above the sofa. (The are hung too high currently. If you move to above the sofa, hang them lower. Middle of the painting should be average eye height off the ground. Often 56" off the floor is used as the middle of where a piece of artwork should be.)

2. In some of the areas where the paintings are currently hung, frame your kids' drawings and hang them. Place them a kid view height.

3. I agree with Rho. Add a chalkboard wall and a magnetic wall.

What will go in the space where the crib and changing table are now?