In many homes, it's common for two living spaces to coexist, a living room and a family room. Though some might use the terms interchangeably, there are notable differences between the two rooms, such as their physical location inside the house and their function in our day-to-day living.
A living room often sits at the front of a house, adjacent to the entryway, and is typically a formal room. The focal point in a living room is often a fireplace, with a formal seating structure arranged around it. Living rooms are more formal than family rooms.
A family room is a casual space for people to gather and relax, often directly set off from the kitchen. It's where the family gathers, and everything is livable and inviting.
In homes that just have one gathering space, you're more likely to see just a family room as opposed to a living room.
Information provided by Alexandra Kelly, senior home editor for Martha Stewart.