02:11 PM EDT, 07/10/2024 (MT Newswires) -- US apartment rents grew in June at the fastest year-over-year pace in more than a year amid strong demand, according to a Wednesday report by Redfin (RDFN).

Rents climbed 0.7% on an annual basis last month to $1,654, the highest level since October 2022, the real estate brokerage's report showed.

While demand remains strong due largely to affordability challenges in the home buying market, a large volume of multi-family building supply has kept a lid on how high asking rents are able to rise, according to Redfin.

New apartments are filling up at the slowest pace since 2020 as many multi-family buildings that began development during the migration frenzy of the pandemic are being completed. The apartment vacancy rate is at 7.8%, up from 7.4% at the start of 2023 and 7% at the start of 2022.

"Demand from young renters, many of whom are opting to continue renting rather than face an increasingly unaffordable homebuying market, is bolstering rent prices nationwide," Redfin wrote. "But so far, price growth has been limited because there are still a lot of new apartments hitting the market to meet that demand."

Apartment rents in Virginia Beach, Virginia, climbed the fastest last month among the 33 metros Redfin analyzed, at nearly 13%. Rents increased by about 12% in Cincinnati and Washington, DC.

Florida is bucking the trend with rents declining in its four most populous metros last month, according to the report. Jacksonville's median asking rent dropped more than 12% year over year in June, the metro's largest drop in records dating back to 2019. Rents in Tampa, Orlando and Miami fell by single digits, according to the report.

"With so much supply on the market, renters may be able to get concessions like free parking or discounted rent," said Redfin Senior Economist Sheharyar Bokhari. "But renters in Florida should be aware that landlords are grappling with surging home insurance costs, and they may ultimately ask tenants to foot the bill via higher rents."

Price: 6.33, Change: -0.11, Percent Change: -1.63