03:22 PM EDT, 06/11/2024 (MT Newswires) -- US asking rents rose for the second straight month in May to the highest level since 2022 amid strong demand and slowing supply, Redfin (RDFN) said Tuesday.

Rents advanced 0.8% year over year to $1,653 last month, the highest level since October 2022, the digital real estate brokerage reported. That marks the second straight month of rent increases following 11 months of decreases, its data showed.

"Demand from young renters remains high, as many of them are opting to stay put rather than contend with an increasingly unaffordable homebuying market," said Redfin Senior Economist Sheharyar Bokhari. "But so far, rent price growth has been limited because there are enough new apartments to meet demand, even in the busiest time of year for the rental market."

While multifamily construction surged during the pandemic, multifamily building starts have fallen below their 10-year historical average, according to Redfin. While a backlog of new units hitting the market each month has kept a lid on the rate of rent increases, asking rents last month were just 2.8% below the record high of $1,700 reached in August 2022, it said.

Over the past three quarters, the rental vacancy rate has held steady at 6.6%, remaining at the highest level since 2021, according to Redfin.

Five of the 33 major US metros tracked by Redfin posted double-digit rent increases in May, led by Washington, DC; Cincinnati, and Chicago. Last month's biggest decliners were Jacksonville, Florida; San Diego; and Austin, Texas, according to Redfin.

In a separate report by Realtor.com that tracked 50 metros, May rents came in at $1,732. Rents were down $13 compared with the year earlier, marking the 10th straight month where rents have fallen on an annual basis, according to its data. However, the annual declines in asking rents have been slowing since February.

"This deceleration trend could hinder further improvements in the overall rate of inflation and add long-term uncertainties, underscoring the consistent need for additional housing construction to alleviate the supply shortage that is contributing to higher cost," said Realtor.com economist Jiayi Xu.

Realtor.com is a unit of News Corp (NWS).

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