@Joe Splitrock valid concern that can only be answered by look at what is happening with millennials and how they are now getting married and buying in suburbs again (granted at older age than earlier generations).  

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. 

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.

Where are Millennials Buying?

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

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.

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

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...

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.

Most people who i work with from BP using this or similar strategies are young professional millennials, qualifying for a purchase price on average $550-$750K give or take, and with that price point wanting something North Park, Normal Heights, Mission Valley, Clairemont, Serra Mesa, and Mira Mesa.