People rent homes for a lot of reasons....1) They recently relocated to the area and need to scope things out before they buy. 2) Renting can be cheaper than buying, plus you don't have to deal with all the capex and repairs. 3) The millennials like to move around a lot.

A true decrease, in my mind, should cause prices to dip as well.This is a recent article regarding millennial's movement. 

It seems as if we are becoming a renter nation, and millennials are going to be driving that along with baby boomers.  

Do you see older established families or so called millennials moving in?

The days of 6 and 7% commission realtors is fading slowly as the older generation that would accept that is fading fast and millennials are taking over. 

It's been crazy watching the change the past 6 years, all the new apt and condo buildings, attracting millennials.  

I've worked with a lot of investors from your area who are happy with the lower prices and great returns, and the added fact that it's only an hour or two away.I've written more about the market in these two posts here:https://www.biggerpockets.com/forums/621/topics/396725-millennial-migration-to-sacramento-2017---here-comes-the-rushhttps://www.biggerpockets.com/forums/55/topics/396376-looking-to-get-unstuck-in-the-sf-bay-areaYou can expect an average purchase price of around $350k which means only $88k for 25% down.

I recommend Sacramento far and above all other options for several reasons, here they are and the links to the data backing up the claims:Sacramento is projected by Realtor.com to be the #4 Hottest Metro Market in the Nation, with a projected appreciation this year or 7.2% and sales growth of 4.9%Sacramento is going lead the nation in rental growth in 2017 with a 10% year-on-year increase, and an 8.5% increase in 2018And that's all because Millennials are moving to Sacramento in droves for a better quality of life, and that trend is projected to continue for the next 5 years.

It's seems the millennials are averaging below 200k with their income and debt levels. 

Some other reasons I've read include:- Shift of attitude against home ownership, but still desiring SF lifestyle- Millennials are seeking to rent rather than buy.