‘Boy Meets World’ clip shows drastic difference in housing market, income

A resurfaced clip from the beloved ’90s sitcom Boy Meets World has sparked a conversation about the drastic shift in housing affordability over the past two decades. A TikTok video analyzing the episode “Pickett Fences” highlights how much easier it was to buy a home in 1999 compared to today.

Newsweek reached out to Freddie Smith via email for comment.

Why It Matters

Housing prices have skyrocketed, while incomes have failed to keep up, making homeownership increasingly difficult for many Americans. According to the U.S. Census Bureau, the median home price in the U.S. was around $119,600 in 1999; as of January, it has surged to $446,300—an increase of almost 275 percent—while incomes have not kept pace.

What To Know

The Boy Meets World episode “Pickett Fences,” which aired in 1999, featured a storyline where characters Cory and Topanga attempt to buy their first home in Philadelphia. This episode was recently analyzed in a TikTok video by Freddie Smith, who broke down the affordability of housing then versus now.

Smith noted that in 1999 the median home price in Philadelphia was approximately $80,000, while the median household income was around $40,000 per year. This meant that homes cost about twice the annual income. He went on to show a 3 percent down payment required just $2,400, and the total monthly mortgage payment—including interest, taxes and insurance—was roughly $750, which represented about 25 percent of a household’s monthly income.

Fast-forward to today, and the situation has drastically changed. Smith noted the median home price in Philadelphia has surged to $250,000, while median household income has only grown to $60,000. He stated home prices have jumped by over 200 percent, while incomes have increased by just 53 percent, showing how homeownership is significantly less affordable than it was in 1999.

This affordability gap is not just a Philadelphia issue—it reflects a nationwide trend. In 1999, the national median home price was around $119,600, while the median household income was $40,700, meaning home prices were about 2.9 times annual income. Today, the median home price has soared to $446,300, while median household income in 2023 was around $80,610, according to Federal Reserve Economic Data. That pushes the home-price-to-income ratio to approximately 5.6.

Additionally, mortgage rates have also played a crucial role in affordability. In 1999, the average 30-year fixed mortgage rate hovered around 7.4 percent, according to data from Freddie Mac, but lower home prices meant monthly payments were still manageable. Today’s rates are fluctuating around 6.5 percent to 7 percent after reaching historic lows in 2021, but the combination of high home prices and these rates makes mortgage payments considerably higher than they were in 1999.

What People Are Saying

Alex Beene, financial literacy instructor for the University of Tennessee at Martin, told Newsweek: “The comparison of mortgages over the last 25 years is spot-on and really touches on the astronomical rise in housing costs, when compared to a less significant bump in earnings. Clearly, wages not keeping pace with costs is a key component to the problem we currently have. Often ignored, though, is the rise in perception of property as more of an investment than just a place to live. Expectations on housing values to constantly rise have also contributed more to pricing escalation.”

Kevin Thompson, founder and CEO of 9i Capital Group, told Newsweek: “…A big part of the problem? New home construction—especially smaller, entry-level homes—collapsed after the Great Recession and never recovered. That’s left us with a major supply/demand imbalance. Meanwhile, job growth picked up, but wages stayed flat because more workers entered the labor force, keeping paychecks in check. Add in Fed stimulus keeping rates low for years which pumped up demand but didn’t boost wages, and you’ve got a recipe for housing becoming way less affordable.

Bottom line: Home prices have run laps around income growth, and as long as inventory stays tight and wages lag behind, this trend will continue.”

Jessica Lautz, NAR Deputy Chief Economist and Vice President of Research stated in 2024 before the House Committee on Financial Services Subcommittee on Housing and Insurance: “First-time home buyers continue to struggle to enter the housing market lacking the housing equity that boosts the purchasing power of repeat buyers. First-time buyers accounted for 32 percent of primary-residence buyers last year, which remains well under the historical norm of 40 percent. While there is a smaller share of first-time buyers, they are also older than they have been historically. In the 1980s, the typical first-time buyer was in their late 20s; however, they are now in their mid 30s. Among first-time buyers who can enter the market successfully are those with household incomes of nearly $25,000 more than those of the year prior.”

What Happens Next

Housing affordability continues to be a significant issue in the U.S., with rising home prices, high mortgage rates and stagnant wage growth making it increasingly difficult for new buyers to enter the market. The threat of tariffs on imported construction materials, such as lumber from Canada, could make matters worse for potential homebuyers.