As we officially close the book on 2011, it’s time to start looking towards 2012 and what it has to offer in home improvement and interior design. In 2011, we saw a movement towards green appliances and energy saving add-ons, like solar panels – all of which are definitely here to stay, but with a twist.

In an effort to keep costs within a lower budget, most homeowners are steadily making a switch from the lavish and extravagant home additions, like fully decked out kitchens with 12 burners that no one ever actually uses, to practical home improvement projects that combine aesthetic appeal, durability, and healthy living with a higher return of investment, and possibly some tax breaks, as well.

Here are a few of the top design trends that are already showing signs of emerging after the New Year:

1. Bright, airy family rooms with outdoor living spaces. Instead of creating additional costly add-ons and hiring someone to knock out a few walls in an effort to enlarge the main house, more and more homeowners are leaning towards creating an outdoor oasis in their backyard – all it takes is an eye for landscape design and possibly a green thumb. With a new sliding glass patio door, strategically placed decorative mirrors, and a splash of light paint inside, taking the time to remodel the backyard can open up even the most cramped living rooms arrangements, which not only brightens the interior mood of the house, but also the value of the property itself.

2. Bold color accents and large furniture. In late 2011, many people were already seeing the appeal of bolder, bright colors in a room – which is definitely one of the easiest ways to reinvent a room by changing up the color and size of the furniture inside of it. Large sectionals have become very popular, and are most likely going to continue to be in style come the spring and summer months. On the flip side, neutral colors are still here to stay, and they’re a great way to mesh elegance and personality while trying to breathe new life into an old, stale design – especially when they’re combined with a single bright centerpiece to draw the eye.

3. Dark hardwood and vinyl floors and simple accents. Many homeowners are saying out with the old, easily stained carpet, and in with the new energy efficient hardwood floors complete with heating panels, which are sometimes available with discounts, as well. Combined with leather sofas and sectionals, hardwood flooring and vinyl plank flooring are becoming a favorite way to quickly make a drastic change to the interior of a house. In general, most people are choosing to go with dark floors and light colored walls to create a more open room.

4. Earthy, dark leather furniture. Although the beginning of 2011 saw a rise in chunky, large fabric covered furniture, it’s already apparent that many people are moving back towards a more traditional, subdued look when it comes to interior decorating. As many homeowners are already finding out, it’s easy to inject class into a room with simple touches, like elegant side tables, stylish lamps and other accessories – all of which are easy to do at home. When paired with Earthy, leather pieces, they create a comfortable lounge style room that everyone finds appealing and comfortable to sit in.

5. Simplistic design coupled with airy colors. In contrast to the more subdued lounge design, other homeowners are finding that they prefer a more modern look, with softer colors and simple, more technologically focused rooms. For instance, lighter hardwood floors, larger windows, soft paints and simplistic furniture is always going to be a popular way to quickly brighten a room without any expensive overhauls.

One of the easiest ways to refresh the interior of a house on a budget without hiring an expensive contracting crew is to focus on home improvements that are easy to control, like the color, design and placement of furniture, and repainting outdated walls and molding around the house – which is exactly what’s projected to continue to trend in 2012. In the upcoming year, expect to see a mix of modern design and bright colors, combined with cost effective add-ons that reduce energy bills and increase livability.