04:00 PM EDT, 09/10/2024 (MT Newswires) -- US apartment rents rose at the fastest annual pace in more than a year last month amid a slight uptick for studio and one-bedroom units, Redfin (RDFN) said on Tuesday.

The median asking rent increased 0.9% year over year to $1,645 in August, marking the biggest increase since April 2023. Apartment rents have now climbed annually for five straight months, according to the real estate company's analysis. Rents were up 0.1% from July.

Studio and one-bedroom apartment rents gained 0.1% annually to $1,495 while two-bedroom rents were unchanged at $1,725. Three-bedroom apartment rents fell 1.7% to $2,008.

"Almost everything in our lives costs more than it did two years ago -- but rents have remained largely stable thanks to the construction boom, especially across the Sun Belt states," said Redfin Senior Economist Sheharyar Bokhari. "We are seeing rents tick up a little now that new construction is starting to slow down, but asking rents are likely to stay relatively flat for some time due to the backlog of new apartments that are still coming onto the market."

Completions of multifamily buildings are at "historic highs" in 2024, driving some owners to offer concessions to prospective tenants, according to Redfin.

Rents remain below the all-time high reached in August 2022. Since wages have grown 3.8% year over year, the data show that rental affordability has improved, Redfin said.

Among the 33 major metros tracked by the company, rents fell the most in Austin, Texas, at nearly 18%. Texas signed off on the most new construction in the country during the pandemic to meet surging demand but that demand has now leveled off, the report showed.

The biggest increase in asking rents was seen in Virginia Beach, Virginia, at 15%.

Price: 10.62, Change: +0.19, Percent Change: +1.77