The cost of renting an apartment in the Washington area climbed 3.6 percent in the last year -- greater than the rate of inflation -- according to a report from a real estate consulting firm.

Homes lingering on the market and renters with well-paying jobs contributed to people moving into high-end apartments at one of the strongest rates in the nation, the report said. And as demand rises, so, too, do prices. The area's average rent was about $1,600.

From a development perspective, the 3.6 percent increase is "definitely a good thing," said Grant Montgomery, vice president of Delta Associates, which released the report.

Older, less pricey apartments are also filling up, an early indicator that job growth has resumed but that renters are adjusting to a "new normal" in the down economy, the report said.

With the local economy still in a nascent recovery, people are more value-conscious, Montgomery said.

"We think the Class B [older] market is benefiting from that," he said. "Class B absorption has been doing very well recently."

The rent increase outpaced the inflation rate of 2.2 percent in the 12-month period ending in April. And renting in the area is certainly no bargain; rent in the District averaged more than $2,137.

The rent increase outpaced the inflation rate of 2.2 percent in the 12-month period ending in April. And renting in the area is certainly no bargain; rent in the District averaged more than $2,137.

But Montgomery said he didn't think renters would get priced out of the market anytime soon. Top-tier rentals, for example, actually slipped 1.8 percent during the previous year.

Typical annual growth in rents is about 3.9 percent, he added, so "we're just sort of getting back to normal after a time of depressed rents."

Over the next 18 to 24 months, Montgomery predicted that vacancy rates will decline and rents will increase as the economy picks up.

"We're also going to have a limited ... supply coming online," which, with strong demand, should continue to push up rents, he said.