Diane Ernjakovic and Rachel Keach of One Three Design share how they transformed a small 475-square-foot basement into a bright and cheerful living space for a family.

Diane and Rachel painted the walls white for a fresh feel, and added neutral furniture and punches of colorful accessories. A built-in unit that displays decor has a backlit mirror for additional lighting and warmth. The stained wax oak hardwood floors are fitted with a dimpled underlay that allows for water drainage and prevents flooding. The homeowners’ diplomas act as art in the modern office, while the gym features a gorgeous graphic wall. The result is a basement that doesn’t feel like a basement at all, but instead, an extension of the home.