According to the National Association of REALTORS, the median home price went up in nearly every metro area in the United States. The purchase price on houses went up 9% in the first half of 2023. Meanwhile, escalating interest rates on mortgages drove average monthly payments to record highs this year.
From Home Alone to Miracle on 34th Street, Christmas films showcase now-iconic homes where characters celebrate the season’s joys. We may dream of living in these houses. But could today’s average American afford to buy one of these homes?
The current affordability of homes, particularly those depicted in classic Christmas movies, faces several challenges compared to the past. One primary factor contributing to this issue is the significant increase in real estate prices relative to household incomes. Over the years, housing costs have surged exponentially, outpacing the growth of incomes for many families. Simultaneously, high interest rates on home mortgages present a notable obstacle. Although homes are not considered a liquid asset, they make up a large part of the average American net worth.
A Financial Freedom Countdown study compared six classic holiday movie home prices with the average income to determine their affordability.
The Family Stone (2005)
Address: 144 Riverside Ave, Riverside, CT
The Family Stone portrays the Stone family’s eventful holiday reunion as the eldest son, Everett, brings his girlfriend, Meredith, home to meet his eccentric, tight-knit family. However, Meredith’s attempt to fit in with the Stones encounters numerous challenges, leading to humorous and touching moments as family dynamics unravel.
The Connecticut home has an estimated value of $3.9 million, resulting in a monthly payment of $31,842. The median household income in Riverside is only $250,000. In the movie, however, Everett Stone has made it on Wall Street. Meredith is portrayed as a successful businessperson, and since starting a business is one of the best ways to get rich, they could afford to buy a similar home.
Home Alone (1990)
Address: 671 Lincoln Avenue, Winnetka, IL
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Home Alone follows the misadventures of eight-year-old Kevin McCallister, accidentally left behind after his family leaves for Paris on their Christmas vacation. Initially reveling in his newfound freedom, Kevin soon faces a pair of bumbling burglars and devises elaborate traps to protect his home. Filled with comedy, heartwarming moments, and Kevin’s ingenious schemes, the film showcases the power of resourcefulness and family, delivering a holiday classic embraced for its humor and heart.
All parts of the movie, including the famous airport scene, were filmed in Illinois, and the Georgian home on a half-acre lot has an estimated price of $2.39 million. Although Winnetka is home to a few billionaires, the estimated monthly payments of $18,014 are unaffordable for the average American residing in a city with a median income of $250,100.
A Christmas Story (1983)
Address: 3159 W. 11th Street, Cleveland, OH
A Christmas Story is the nostalgic and humorous tale of young Ralphie Parker’s quest for the ultimate Christmas gift — a Red Ryder BB gun — despite warnings about its potential danger.
Set in 1940s Indiana, the film follows Ralphie as he navigates school, family dynamics, and his persistent campaign to secure the coveted present. With a blend of humor and heartwarming moments, the movie captures the essence of childhood dreams and the joys and challenges of the holiday season.
Although the movie is set in Indiana, the iconic home is in Cleveland, Ohio, where the median income is $37,351. The house depicted in the film was last sold in 2005 for $150,000. Although the home is off-market, the current estimated price of $291,912 is unaffordable in a county with a median household income of $37,351.
It's a Wonderful Life (1946)
Address: 4587 Viro Rd, La Cañada Flintridge, CA
It’s a Wonderful Life tells the story of George Bailey, a compassionate, dedicated banker who manages Bailey Building and Loan in the small town of Bedford Falls. Facing financial ruin and disillusionment, George finds himself on the brink of suicide on Christmas Eve. However, a guardian angel intervenes, revealing George’s profound impact on his community. Through a heartfelt journey of self-discovery and redemption, the film celebrates the significance of kindness, love, and the effect of one’s life on others.
Although Flintridge, CA, has a higher household income of $210,625 per the United States Census Bureau data, the home featured in the movie has an estimated value of $2.1 million, making it unaffordable.
Miracle on 34th Street (1947)
Address: 24 Derby Road, Port Washington, Long Island, NY
Miracle on 34th Street tells the heartwarming story of Susan Walker, a skeptical young girl who encounters Kris Kringle, a man claiming to be Santa Claus, at Macy’s department store during Christmas. As Susan’s disbelief in Santa Claus is challenged, her wish for a house and a father figure becomes entwined with Kris Kringle’s mission to restore her belief in the holiday spirit.
Homes similar to the ones Susan had on her wish list are listed for $1 million and are barely affordable for Long Island residents.
National Lampoon's Christmas Vacation (1989)
Address: 727 West Kenneth Road, Glendale, CA
National Lampoon’s Christmas Vacation chronicles the misadventures of the Griswold family as they eagerly prepare for an extravagant Christmas celebration. Clark Griswold, played by Chevy Chase, anxiously anticipates his holiday bonus from his boss, Frank Shirley, hoping to install a swimming pool for his family.
However, when Frank unexpectedly suspends the bonuses, chaos ensues, and Clark’s plans for the perfect holiday are thwarted, leading to a series of hilarious and chaotic mishaps.
Although most of the movie was filmed at the Warner Bros. Studio set, Frank’s home is in Glendale, CA. The house has a monthly payment of $33,678 based on the current estimated purchase price of $4.7 million. Although specific details of Frank’s high-level executive position are not mentioned in the movie, the home would be unaffordable today based on the average income.
Economic Realities Limit Access to Iconic Christmas Movie Houses
In examining the affordability of iconic Christmas movie homes, it’s evident that the dream of owning these nostalgic residences remains elusive for many middle-class Americans today. Soaring home prices, compounded by high mortgage interest rates, are formidable barriers as household incomes struggle to keep pace with the rapid rise in property costs. This financial reality leaves only a select few of these cinematic dwellings within reach, highlighting the widening gap between the charming celluloid representations and the challenging economic landscape faced by families striving to achieve such holiday magic in their homes.
This post was produced by Financial Freedom Countdown and syndicated by Wealth of Geeks.
