A NY / London Future?

HI All,

Speaking with a few o/s friends today and we were discussing the possibility that Sydney may become increasingly like NY / London in the rental market where prices take up way over 25% of income and people basically rent for large periods of their life if they wish to remain close to the CBD.

Looking at some eastern suburbs rentals today, where some 1 bedders are getting 450pw without offering all that much and people snapping them up in desperation, I can see us heading down that track.
i also think that where a few years ago when couples decided to rent a place out together many went for a standard 2 bedder as rents were not so bad. i know quite a few who opted for this. The second room became a study / storage / wardrobe. From what I have seen the last few month or two, the majority of prospective tenants at 1 bed rental opens in the 350-450 bracket are couples. By pooling their incomes together the are getting average middle of the road rentals. As rents go up further, a bigger % of their combined incomes will go to paying rent.
NY, London, Sydney, Tokyo....Renting here for some is more a lifestyle decision. Would make little sense financially but you may want to live in the heart of these cities for a couple years as an investment in lifestyle.

I am looking at London in the near future and would be willing to drop 2 to 3,000 GBP's per month to enjoy the city..
I think this has been discussed before. I've said on several occasions that I think renting will becomme the norm for inner city living within the next couple of decades, which is one of the reasons I have bought several inner city IPs (and I mean really central).

It makes sense, especially with the current trends away from saving and frugality because it's 'old and boring'.