HOUSTON- There's little doubt that 2012 was a highlight year for the multifamily sector in Texas. Occupancy throughout the four major cities (and the state, for that matter), was well above 90% to 92%, with limited product coming online (though more is under construction in Dallas and Austin than in Houston). Thanks to investment and renter activity in the multifamily sector this past year, "most brokers and principals are smiling," comments Ed Nwoediki senior director, Apartment Brokerage Services at Cushman & Wakefield of Texas Inc.

Richard Campo, chairman of the board and CEO with Camden Property Trust also didn't mince words concerning 2012. "It's probably the best business environment we've had in Texas for the past 20 years," he remarks.

Both Campo and HFF Senior Managing Director Craig LaFollette point to jobs growth as the reason behind the multifamily sector demand. "Houston has led in this area, but job growth across the state is very strong," he says. Campo, who heads a nationally operating multifamily REIT goes even further, pointing out that Texas is in the top quartile of the 16 markets in which Camden operates. As a result, rent levels are at their highest – and are continuing to grow.