Nate Berkus has made a stylish focal point of vertical space in this awkward small living room

Designing a small room comes with its own challenges, one of the main ones being storage. But in the living room of this Upper East Side home, a few key design elements have come together to create a scheme that's not just incredibly stylish but maximizes every inch of space.

Interior designer Nate Berkus took to Instagram to share this latest project, and it's full of his trademark features: characterful decor, timeless furniture, and a careful balance of old and new. The small, neutral living room as a whole is a showstopping space, but the vertical storage forms the design's stand-out feature.

There's plenty to marvel at in the reimagined small living room – layered neutrals create a warm, relaxing scheme that somehow feels spacious in such a compact square footage.

From the textured wallpaper that looks like fabric and the long plush sofa to the rich green accent chairs and the old-meets-new decor, each element ties together neutral colors and natural textures.

And while so many inspiring features give this design a wow factor, nothing quite catches your eye like the floor-to-ceiling shelving that really maximizes the living room's vertical space.

'Our client fell in love with the layout and bookshelves from our former NYC home, so [we] had the chance to recreate a similar look in their space. It’s always exciting to bring a successful design element back to life in a new way,' Nate writes in the caption.

Featuring nine rows of natural wood shelves and two rows of drawers at the base – plus an integrated media unit – it's not hard to see why it's the focal point of the room. Filled with books and decor it gives the scheme a characterful, lived-in appeal.

Shop the look

A sofa isn't complete without throw pillows – this golden yellow velvet cover is a beautiful way to add extra warmth to a design.

Green accent chairs added a muted hue and a sense of luxury to the space – we love the curvaceous design of this one.

A tray on a coffee able is the perfect way to add interest – this design is similar to the one used in the Upper East Side living room.

This small space proves that utilizing vertical height can give a bijou room a sense of grandeur. Warm neutrals, hints of rich earthy tones, and natural textures throughout are key to creating a design that exudes understated luxury. We're totally inspired!