Getting your unfinished basement shaped up is going to be great. You’re going to have a lot more useable space, and you’ll feel good about transforming the area yourself. Now, that you have addressed the ceiling, it’s time to move on to the walls.
Paneling
Okay, before you object, at least consider it. Paneling is very cheap and it’s generally pretty simple to install. It doesn’t have to be dark, ugly paneling either, since there are many more choices available today than there were in the past. Some styles look just like wallpaper.
Using paneling is a far simpler, more cost effective way to create a finished surface than applying drywall. You can paint paneling or even wallpaper it if necessary. On the other hand, you might actually discover some paneling that you find attractive.
If you don’t want to panel the entire wall, consider painting the top half and applying paneling, wainscoting, or bead board to the lower half.
Paint or Faux Finish
If you just can’t get excited about paneling, you can always paint. It may not seem like it will make a huge difference, but simply changing walls from dark and dank to crisp and clean, will give the space an entirely different feel. Keeping the rough look will work great with many design plans including Country, Rustic, Industrial and Eclectic. Throw in a few distressed pieces and the walls will look as if they were part of the design plan.
In addition, the basement is a good place to experiment with faux finishes. Creating movement or texture using different treatments will make rough walls look more finished. You can try plaster treatments or stick to paint. Faux finishes and other treatments are also great tools for hiding imperfections.
For paint finishes, start with a base coat. Use paint that is a bit lighter or darker when applying the faux finish. Experiment with different colors, consistencies of paint, and glazes until you achieve a finish that you like.