Rent growth across the office and multifamily sectors is no longer in lockstep, disrupting a lengthy period in which the sectors typically followed the same trend, according to a new analysis from Moody's Analytics.
Last year marked the only time that rents for office and multifamily actually went in opposite directions, analysts say, calling the aberration a "great divergence."
"Companies haven't fully reopened offices, but households come back to cities anyway," they say. "Further, in a rebuff of the historic link – it wasn't just suburban apartment markets feeling the positive demand shock, dense urban areas bounced back, with many having apartment rent levels that have now fully rebounded."
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