And Sydney's traditionally gay suburbs like Paddington, Darlinghurst and Surry Hills are now turning heterosexual as a "pink" shift to the city's inner-west picks up speed.

Facing a similar fate as the Gay and Lesbian Mardi Gras, gay pubs and clubs along Oxford St have become so popular with heterosexual crowds that gay Sydneysiders have been forced to move out.

The relocation also follows a similar pattern to that of Sydney's migrant population who congregated in one suburb for a feeling of safety and connection, only to scatter to other areas when individual confidence picked up.

"Gay and lesbian people are moving to the west because they now have an increased confidence in being out and about in local communities," Anthony Schembri, Gay and Lesbian Rights Lobby convenor said yesterday. "They no longer feel they have to stay in a certain area to feel safe," he said.

The shift has created an undercurrent of activity in the city's west stretching from Newtown to Parramatta.

Real estate agents report strong gay and lesbian activity and pubs and restaurants are refashioning themselves to cater to their new clientele.

In an effort to cash in on the change, RAMS Home Loans has dedicated a gay and lesbian business development manager to the area.

"The mentality among the gay and lesbian community now is that Oxford St is not the centre of the universe and the inner-west is a cheap alternative just a little further from the city," Peter Gordon from RAMS Home Loans said yesterday.

"Most gay people start looking in the east and quickly realise it's cheaper in the west," he said.

He said as Oxford St slowly closed to Sydney's gay set, the inner-west became the "funkier" alternative with designer apartments gradually popping up and gay pubs emerging.

Pubs like the Newington Inn in Petersham have reaped the rewards of the shift, as gay drop-ins from nearby Newtown – the famous setting for the opening scenes in the film, Priscilla, Queen of the Desert – find a new home further afield.

When publican Chris White last year bought the Newington Inn he found the patrons were mainly lunchtime factory crowds and live-music revellers.

But within months, the crowd turned decidedly lesbian, he said.