Richard Campo, chairman and CEO of Camden Property Trust, outlined the problems the additional inventory have created for REIT's properties during its first quarter earnings call. The local company owns interests in and operates 185 properties containing 63,658 apartment homes across the U.S.

"The Texas markets are getting beaten," Campo notes, adding that they're suffering from "a ton of new supply" that was constructed during the last part of the development cycle when Dallas and Houston were the only two markets in the country where developers could build. "Unfortunately, some of it is directly competitive with a lot of our assets in Houston and in Dallas, as well."

Campo notes that merchant builders are offering hefty concessions for the new propeties. He gave this example during the call: every day during his morning commute, he drives by a new apartment community that is in lease up. It has a banner on the side of the building offer three months of free rent.