Ideas are fine but they don't always help unless the plan is to gut the space. Painting is the right idea, I think but, of course, the wallpaper needs to be removed first. Then there are 3 decisions to make: 1- Will the counters be left or replaced. 2- Will the cabinets be painted as well as the walls. 3- Is there room in the budget to change out the window covering to correct the space mistake that makes. If the plan is to remove the counters then the color scheme is basically what you like. If the plan is to leave them then I feel the cabinets need to be painted. Because the cabinets are sort of stuck up all over, I'd plan to make them blend vs pop. That can be done with paint. To do that, I'd plan to pull paint samples of whole wheat bread color browns and creams. Hopefully you like those colors (that's always a factor). But with a travertine floor, especially a light one, those colors are logical. If there are extra floor tiles somewhere that would be very helpful to take to the paint store. The color of the floor could tilt the scheme one way or the other. If that's ok, then find a greyish brown (I'd try to avoid reddish brown) that works with the counter color well enough to make it look more related to the lower cabinets. Then I'd try to find a cream/ivory color that works with that brown and has the same undertone. I'd paint the walls and top cabinets in the ivory and the base cabinets in the brown. I'd do the trim in satin and walls in the same color but flat. Then I'd look for a window covering (with that scheme a natural fiber look would be good) that fills the entire window niche and install it right up under the top of the indent in the wall. I wouldn't get a dark window cover as that will make it look like a hole in the wall rather than blend-y. Changing the window cover will make the wall look much better when everything is done. (If there is budget, I'd change the window to fit the whole space first but that's not necessary).

Rachel, My kitchen is/was an identical layout as yours, just flip it over. I love seeing yours and how we can work with our small areas. Also love the colors and keeping with your home's history. The laundry area is open to my kitchen, I suspect they removed the wall you have. They left a half wall where your furnace is and added a wall/door facing the outside door. This left the laundry open to kitchen. The furnace area is a fairly large space/room, but I was able to install the water softener in there and also use it for storing brooms, ironing board, etc. My door to the living room is on the opposite wall as yours so there are cabinets/counter up to this door forming an L shaped kitchen. Ceiling heigth cabinets were built on the kitchen/furnace room wall which took away any eating area. I removed them, big wasted space and now have a dining area there. With all, I still had the same dilemma as you with the water heater. Mine is right in the open and next to the WD. This couldn't be enlcosed with the furnace as it would not have allowed enough walking area between cabinets/counter which were built to the outside door. If these were not new and/or take a lot of work to change, I'd put the wall back up to close off the laundry area....have my days when a laundry in kitchen view isn't my thing. With the WH sitting right next to my washer/dryer, I used one of the ceiling height cabinets taken from kitchen to enclose it (surprising, it fit perfectly). The back is open for circulation, doors can be open for access and it can be moved if needed. The other cabinet fit perfectly beside the opposite side of W/D. Pure luck...still have the storage. I can't tell how much room you have between the washer and furnace. But you could enclose all of this with folding shutter doors...keep the air circulation needed...from wall to wall across the laundry, which would give you a large hidden storage area. They now have full ceiling height shutters/doors availabe at HD and are inexpensive. Since the furnace filter area can't be covered, it looks like there isn't enough room, one of the doors could be added from ceiling/wall down to the filter. At least all the duct work and plumbing would be hidden and you can still get to everything if needed. Hopefully this doesn't sound like rambling....it is pure creative tasks in making our small homes look/feel right.

My favorite paint colors are Behr Honey Infusion, Behr Honied White and Behr Yucca White. Honey Infusion is a great yellow based neutral which worked to lighten up a red and brown guest room. Honied white was used after the walls were painted with Killz twice to lighten up a bedroom in med blue and puke green. Yucca White was used on the master bedroom gray headboard wall after it had been Killz.

Oh, I agree...no fun to make decisions under pressure, but it feels like thats been the story of this build...Ive learned so much and it feels like 80% has been under a deadline...so am considering trying to figure out the paint stuff tomorrow-or at least take a guess...the walls are so small it wouldnt take much to repaint if needed-Thanks so much for the suggestions of those colors...I just looked them up--I really like both of them. They do look clean/fresh. The laundry room will basically be filled up with the rustic hickory cabinets (lowers along the sink wall- a silgranite sink (blanco laundry sink) which I'll need to choose a color for as well---thinking something of a medium to darker shade just b/c it will be easier to keep clean), & then upper cabinets on the washer/dryer wall) with a quartz countertop (doing granite in kitchen, but figure quartz will be easier to maintain in laundry room)-color tbd...that will take up the log/sink wall and the right/garage door wall....the opposite 'longer' wall we are planning to build a bench/cubbies 'mud room' type piece that will run along that wall...perhaps paint/stain that. There will be a light (pendant or semi flushmount) over the sink, and a flushmount mid room in front of the washer/dryer-oil rubbed bronze and frosted glass. I was also thinking about putting some simple, maybe live edge shelves to the left and right of the window, or maybe those could have some color too. We're doing most of the finish work ourselves & are both working full time--nothings been ideal about this build & I know I should have these things picked out by now- this is my first house I've even owned (I've always rented & have moved A LOT-so maybe have painted a wall or two, but never had the opportunity to design/paint/etc anything from scratch...its a gift, a challenge, and outside my comfort zone all at the same time. :)