Optimize furniture placement in small 80s living spaces by floating a sectional sofa away from walls to create walkways and conversation zones. Arrange seating in a circular or semi-circular pattern around focal points like a kitchen island or fireplace to enhance flow. Add swivel chairs or flexible seating to maximize comfort and adaptability. Keeping furniture scaled appropriately and avoiding clutter makes rooms feel spacious yet inviting, effectively balancing modern design with homey character.