I never wanted to leave my house.  The thought of going out was way too scary.  When I did have to leave, I always took my girlfriend with me and I always made sure I had my backpack with me that contained medication, water, a change of clothes, and a bunch of other things I felt I needed.  I was just too scared of the possible panic and embarrassment.  But then I got really depressed, and things got even worse for me.

Agoraphobia, which literally means "fear of the marketplace", is characterized by having anxiety about being in places or situations from which escape might be difficult or embarrassing--or where help might not be available in the event of having a panic attack or panic-like symptoms. 

Agoraphobia may occur with or without panic disorder and occurs in approximately one-third of people with panic disorder. 

Agoraphobic fears typically involve  situations that include being outside the home alone, such as being in a crowd, standing in a line, being on a bridge, or traveling in a bus, train, or automobile.

In Agoraphobia, situations are avoided and hence, travel is restricted.  People with agoraphobia might, however, not avoid situations but instead endure them with marked distress.  They will also often require the presence of a companion to help them cope with the situations they cannot avoid.

Agoraphobia can be misdiagnosed.  If the avoidance is limited to only one or a few specific situations, than a person may not have Agoraphobia but rather a Specific Phobia.  If the avoidance is limited to social situations, then the correct diagnosis would be Social Phobia.  If people avoid situations because of a fear of contamination, then they might better fit a diagnosis of Obsessive Compulsive Disorder. 

Individuals with Post-Traumatic Stress Disorder might avoid situations that are associated with the severe stressor that triggers their PTSD.  When children avoid leaving home or relatives, they might be diagnosed with  Separation Anxiety Disorder.

With proper treatment, people with agoraphobia can improve.  Medications can help them cope with the intense anxiety.  Cognitive-behavioral therapy can help them learn to face their fears and change their fear-evoking thoughts.  With systematic help, people with agoraphobia can begin to expand their world and overcome their restrictive behavior.

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Source: NIMH (edited version); DSM-IV