Rachel complains about the small apartment and the singing neighbor, but Monica tries to calm her down.

Ross shows off his new earring to Emily, who convinced him to get it, and they bond over his new persona.

Phoebe shows off her new maternity pants, which are actually Santa pants, to Rachel and Monica.

Rachel offers Knicks season tickets to Joey and Chandler in exchange for their apartment, but Chandler refuses.

Ross wants Emily to move in with him, but Joey and Chandler advise against it, saying it's too soon.

Rachel and Monica propose a bet for the apartment and tickets, and Chandler agrees after Joey convinces him.

Phoebe invents a confusing game, but the group decides to settle the bet with a high card draw, which the guys win.

Ross asks Emily to move in, but she suggests marriage instead, and they get engaged using his earring as a ring.

The guys return from the game to find the girls have switched the apartments, but a kiss offer distracts them and they return to their own apartment in shock.

Ross and Emily announce their engagement to the friends, shocking everyone, especially Rachel.

Joey wakes up to the neighbor singing and joins in, ending the episode on a cheerful note.