Home ownership is very low by historical standards, and there is a real chance that millennials aren't going to run out and buy houses, since they pretty much came of age during the financial crisis.I predict that our next recession will be cause by a spike in inflation. 

Congrats Ethan Lee from a fellow millennial!

Also, Stockton might be a better fit because home prices are much lower there but it's growing just like Sacramento.Here's a couple articles to get you started in the right direction and learn more about the neighborhoods of the two cities:https://www.biggerpockets.com/forums/627/topics/424510-how-to-invest-in-stockton-ca---a-detailed-overviewhttps://www.biggerpockets.com/forums/621/topics/396725-millennial-migration-to-sacramento-2017---here-comes-the-rushhttps://www.biggerpockets.com/forums/621/topics/444774-sacramento-neighborhood-map-and-ratings----finallyStart there and see what you come up with.

I can't speak to the STR market, however, as an "elder millennial" (38yo) I know at least a handful of acquaintances (young families) that have moved there. 

Check out 2-4 units or condos in class B areas with young high credit millennials that are appreciating strong.

The millennial generation is the largest generation to go to college.

I've been a broke millennial the majority or my working life but now at 33 I finally have the money to buy a house (my first). 

The other side of this argument is, there are a LOT of people who are renting but want to buy, particularly millennials and educated white collar immigrants.

I kept getting poor quality tenant apps so I furnished a couple houses and posted them on Airbnb and earn nearly double previously asking rent and now get upscale Millennials as guests from wealthy places like Boston and Ct.Quite an improvement over the Section 8'ers, felons, large families on disability with huge dogs...Best description of a dog...

Maybe this whole thing about escaping a rat race is just a extension of millennial thinking.