The Psychology of Interior Design
How Home Layouts Shape How We Live
When most of us think about interior design, we think of paint colors, furniture choices, and accessories. But design is about so much more than aesthetics. It’s about the way the space makes us feel and the practical ways that we interact with it in our daily lives. In fact, psychologists and designers agree that our living space affects us in more ways than one.
This month, we’re going to take a breath––kick back, relax, and learn as Everest Loan Officer Motti Klein takes us through the current research on interior design and the role it plays in our well-being.
Why Design Matters in Real Estate
The purchase of a home is a significant decision. This is why we advocate for clients in more ways than one––connecting them with different experts who can help them feel sure of their choice, confident in the process, and happy with the results.
“Real estate is about more than facilitating a purchase, it’s about making sure the client is happy with the investment,” says Motti. “This was a topic that I really got into recently because, as a loan officer, I want to help clients feel confident that their purchase is the right fit for them. If they can collaborate with their real estate agent to visualize themselves in the space, it can help improve the client’s overall experience.”
This is not just true for a buyer’s investment experience; it also applies to their long-term satisfaction with their chosen home. This is because, as we’ve already alluded, the home space plays a significant role in the resident’s well-being.
Spacial Versatility and the Modern Home Buyer
“Our homes are more than just physical shelters; they are extensions of who we are as people,” explains Motti. “When you walk into someone’s home, you can visualize aspects of their personality in the decor choices, the arrangement of furniture, and even the amount of natural light.”
These aspects, in turn, can affect how well we feel and behave, especially if they directly align or conflict with our preferences. For example, studies have shown that clutter environments can increase stress levels while minimalist, well-organized spaces are more likely to promote focus and a sense of calm.
“The great thing about this is that even small changes can make a difference,” Motti says. “Placing a cozy chair near a sunny window, creating some compact storage areas where clutter tends to accumulate, or adding a pop of colorful decor to a monotone color scheme can affect the entire mood of the space.”
This can be especially helpful to keep in mind for home buyers, who may have difficulty visualizing themselves in a new environment. Understandably, it can be difficult to feel confident about a space that is decorated with someone else’s preferred furniture or laid out in a way that creates an alternative flow from room to room.
This is where real estate experts can step in and help. By taking the time to understand a client’s preferences, they can help them see how each home option can align with those points with just a few adjustments.
The Science Behind Space and Mindset
Interior design psychology isn’t a new idea. Ancient practices, such as the Chinese art of feng shui emphasized harmony and balance within a home’s layout. Surprisingly, many of these approaches are still used today—albeit for different reasons. Feng shui strategies might include things like:
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- Utilizing organizational tools and furniture to declutter the entry way to a home
- Giving kitchens plentiful access to natural light
- Choosing stainless steel fixtures for the bathroom
- Painting and decorating dining and family areas in soft colors
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Today, modern design psychology continues traditions like these by combining aesthetics with neuroscience and behavioral studies to help people create spaces that truly support their lifestyle. There are three primary ways that designers achieve this: flow, color, and practicality.
How Flow Shapes Connection (or lack thereof)
Through the study of proxemics, scientists have learned that the way that furniture is arranged directly affects the way people behave within the room:
“People are always surprised by how the layout of their space can affect how they interact with people,” says Motti. Open floor plans with centralized furniture, for instance, can encourage people to be more social with each other by making it easy for guests to move easily between different areas of the home. This is great for people who want to use their home as a family hub or party space.”
Alternatively, homes with distinct and separate rooms—and furniture placed in perimeters—can provide greater privacy for residents. This type of layout is well-suited for individuals who work from home, need creative solitude for hobbies, or thrive in environments with clear boundaries.
Neither of these layouts is better than the other. The key is to match the layout with the person and their lifestyle.
How Color and Light Inspires Emotion
Research in color psychology has clearly established the effect that different colors have on mood and energy levels. For example, soft blues and greens are thought to promote a sense of calm and serenity, while bright yellows, oranges, and pinks can inspire positivity and boost energy levels.
Combining different shades in the form of paint, furniture, and accents can help homeowners customize the tone of each room. For example, they may choose soft colors for nurseries, bright tones for kitchens and living areas, and medium hues for studies and self-care areas.
Lighting plays a similar role. Natural light has been linked to improved mood, optimized sleep cycles, and increased productivity-–while industrial lighting must be carefully engineered to prevent a sterile, overstimulating atmosphere.
“It’s actually a common discussion among real estate agents,” Motti says. “When people are struggling with selling their home, one of the simplest things they can do is paint the walls or modify the lighting. You don’t have to be limited by small windows or heavy blinds. Owners can also supplement with soft, layered lighting—like combining overhead lights with floor lamps and natural light. It can create so much more warmth and make the space feel much more inviting to buyers.”
Adding plants is another helpful touch—and often more practical than expensive art. Easy-to-care-for philodendrons and pothos can create a sense of warmth and appeal without requiring extensive knowledge of plants or even plentiful natural light. They’re also a great substitute for valuable personal mementos, which some sellers prefer to remove during the listing process.
How Practical Arrangement Can Improve Well-Being
Imagine this: you wake up in the middle of the night thirsty for a cold drink. Half-asleep, you stumble across the house. You don’t turn on the lights because they’re too bright and overstimulating but, on the way to the kitchen, you’ve already bashed your knee on an end table, knocked over some knick-knacks, and stubbed your toe on the kitchen island.
Doesn’t sound very fun, huh? That’s where interior design comes in.
“Our agents often recommend layered lighting for kitchens and bathrooms,” explains Motti. “This way, residents can have nice, bright lighting for day time activities, and practical, soothing light for middle-of-the-night necessities.”
When a space is practically and thoughtfully arranged, it can support routines, encourage creativity, and even improve relationships. A comfortable dining area encourages conversation during meals. A cozy reading nook can facilitate relaxing self-care. A well-placed kitchen island can become a hub for family recipes and discussions.
Putting It All Together
Whether you’re refreshing your living space, selling your current home, or looking for a new one, taking the time to understand the many facets of interior design can help you customize your home for yourself or a future resident. After all, if there’s anything this research has taught us it’s that it’s not just about how a space looks, but how it helps you live.
Everest says: real estate is about
so much more than numbers.
Everest Equity
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and homeowners since 2004
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