I think there may be another factor at work here.....many of those in the younger demographic who would, in the past, fall into the first time home buyer category, have no desire to OWN their own home and prefer to remain tenants. Too much work, no equity build, and interfers with their perceived freedom.
Also, marriage is tumbling. A home is traditionally a setting in which a married couple envisions raising a family.
Also, many childless people, even if they can afford a house, do not want a house. Many prefer apartment or condo living.
An unspoken factor is that, over the next 30 years, many young people may inherit their parent’s houses, as baby boomers pass away.
Of course, this assumes that the parents didn’t get a reverse mortgage to use up the equity in the property. Also assumes that laws on estates and inheritances don’t change in the years ahead. I have a feeling that Obama doesn’t think that people should inherit property.