Apartment rents have experienced the largest annual increase in 18 months for August, rising 0.9% year-over-year to $1,645, according to a Redfin report. Month-over-month, asking rents were up 0.1%. However, they are still below their all-time high of $1,700 two years ago, according to a Redfin report.

Multifamily supply outweighs demand in some areas as building completions are at a historic high this year, which is spurring some building owners to reduce rents and offer concessions. Lower rents paired with wage growth of 3.8% year-over-year in August suggests that rental affordability has improved, said Redfin. 

The median asking rent for a two-bedroom apartment was unchanged from the same a month a year ago at $1,725, while asking rents for 0-1 bedroom apartments ticked up by 0.1% year-over-year to $1,495 and fell 1.7% to $2,008 on apartments with three or more bedrooms, the report found. Meanwhile, the median home sale price was up 7.3% to $439,000 in July from $409,000 two years ago.