While rent is "extreme" for people who don't live here, you should also consider that we generally don't have the same expenses as people in the burbs or elsewhere. We don't own cars, we don't buy gas, etc. That right there knocks $500-750 off your living expenses. Furthermore, you need to consider rent in NYC as a culture tax because no where else in the world will you find anything remotely similar in terms of fashion, design, art, food, etc. You might think you're approximating it with the Olive Garden in suburbia, but you aren't even close.
PS. I pay $2550 for a 3 bedroom with a backyard in the second nicest neighborhood in Brooklyn.
Re: Olive Garden - I escaped the suburbs to live in a major city but it doesn't compare to NYC of course. Where else will you have 5k restaurants and night-life at 3am (Paris, maybe..)
I go up to NYC quite often because I have family there. I was in Brooklyn recently. Nice to hear that there is a startup scene there. Saw lots of new loft construction going up everywhere near Grand. Sadly the Brooklyn Brewery was closed. BTW - Highly recommend Lily Thai (restaurant)
"The Housing Virgins of NYC" http://www.nytimes.com/2006/08/24/garden/24new.html?_r=1&...
Rent-stabilization on the UWS [http://en.wikipedia.org/wiki/Mitchell-Lama].
The rent is lower and the people are just nicer, in DUMBO where our startup is based there's atleast 5 other startups in a 10 block radius. Which, while not SoMa is still pretty good :)
If one is resourceful(and most starving artists/actors/entrepreneurs are) you can find apartment shares in plenty of neighborhoods for under $800/month. It's not luxurious but living in those circumstances is no less worthwhile.
In NYC, a 1BR apartment that you live in by yourself is a status symbol. The average monthly rent is north of $2,500. Spending $2k+ on rent just to live in the city, maybe that's more about ego than it is about money..