Anja Leszinksy's budget of $420,000 would buy two houses in Chicago or three in Dallas. In Sydney, the most unaffordable housing market in the English-speaking world, it gets her a nondescript one-bedroom apartment about 6.4 kilometres from the CBD or a run-down home on the city's outskirts.

She's opting for proximity to the city.

The dream of owning a house is fading for many Sydneysiders. Credit:Rob Homer

“I knew properties were expensive, but I'm getting disappointed because they all seem to sell for a lot more than the price indication,” said Leszinksy, a 25-year-old medical device sales representative who's seen about 18 apartments since September and is still searching. “I want to be close to the city. The size of the place is less important.”

Apartment ownership is on the rise as the Great Australian Dream of a house in the suburbs fades for buyers priced out of the market. Apartments and townhouses accounted for 35 per cent of new housing construction in the three months ended in September 30, compared with 29 per cent five years earlier and 21 per cent 20 years ago, according to the federal statistics bureau.