Darlinghurst is a densely populated suburb with the majority of residents living in apartments or terraced houses. Once a slum and red-light district, Darlinghurst has undergone urban renewal since the 1980s to become a cosmopolitan area composed of many unique precincts. Places such as Victoria Street (which connects Darlinghurst to Potts Point in the north), Stanley Street (Little Italy) and Crown Street (Vintage and Retro Fashion) are known as culturally rich destinations. These high street areas are connected by a network of lane-ways and street corners replete with small bars, cafes and boutique indie retail.

Demographically, Darlinghurst is home to the highest percentage of generation X and Y (28–47 years of age) in Australia. The vast majority of businesses in Darlinghurst are independently owned and operated small businesses with over 50% of all commercial activity in the area being consumer oriented: indie retail, food, drink, dining, leisure and personal services. Darlinghurst is also home to large number of off-street creative industries. This business mix coupled with the area's history of inclusion and acceptance give Darlinghurst an eclectic and vibrant flair.

Darlinghurst's main street is Oxford Street. This major Sydney road runs east from the south-eastern corner of Hyde Park through Darlinghurst and Paddington and terminates at Bondi Junction. Oxford Street is one of Sydney's most famous shopping and dining strips. The Darlinghurst end is well-known around the world as the centre of Sydney's gay community, is the yearly parade route of the Sydney Mardi Gras and the spiritual birthplace of the LGBT rights movement. It is home to a number of prominent gay venues and businesses, while more broadly Darlinghurst is a centre of Sydney's burgeoning small bar scene.

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