Your Trulia Trends link did not have the statistics for the Sacramento metro, so I will have to take your word for it.
Production builders are still putting up new houses in Roseville, Rocklin, Folsom and El Dorado Hills. In the city center it is more common to see rehabbers working on the existing housing stock rather than creating a lot of new homes.
Getting urban growth to have a strong comeback is as simple and easy as bringing the API scores of city schools up a couple of hundred points and keeping them high for a few years. I predict that will happen the same year that the national debt is fully paid off, the crime rate falls to zero everywhere, and every country in the world is at peace with all of its neighbors and within their own borders.