When Agatha June and Jeremy Erwin bought a 975-square-foot bungalow in Austin, Texas, back in 2008, they had all the room they needed. But over time both craved more creative space (Agatha’s business is home-based; Jeremy is a musician.)

Local design-build firm Hatch Works found the solution literally right outside their door. The lot was big enough to build another house — one that was about 500 square feet larger. Agatha and Jeremy eventually turned their former home into an Airbnb. High ceilings and loads of windows make the new place incredibly airy, and it’s infused with the couple’s eclectic boho style. “We love every single spot,” Agatha says. “When you don’t have a giant house, that’s huge.”

Velvet furniture pops prettily next to white walls and black window frames. Putting the violet daybed (from Joybird) and moss green sectional (from West Elm) diagonally across from each other brought balance to the room. “We joke that the daybed is the world’s most expensive dog bed because it’s where our dog, Alfie, hangs,” Agatha says. Pro tip: Sometimes what’s not in a room helps it look larger. There's no ceiling or doorway trim here!

“I wasn’t sure about putting shelves in front of the windows at first, but Agatha sold me on the benefits of having extra storage with all the light shining through,” Jeremy says. The effect is made even cooler because the shelves are anchored by a striking 65-inch-tall custom hood. Bringing in other wood tones, including oak floors and chevron paneling on the island, boosts the warmth. P.S. Check out that narrow pantry for the win!