Homebuilders are developing a plan to construct nearly one million “Trump homes” as part of an effort to tackle the affordability crisis in housing.
According to a report from Bloomberg, Lennar Corp. and Taylor Morrison Home Corp are among the entities working on the proposal urging builders to design a pathway-to-ownership program funded by private investors with entry-level homes. The program involves investors renting homes to tenants, where the rent would be put toward a down payment after three years.
The plan aligns with President Trump’s executive order aimed at preventing corporations from buying up houses.
“We are encouraged by the thoughtful discussions between home builders and the administration that could help more Americans step into home ownership,” a Taylor Morrison spokesperson told the outlet, noting that it is “too early to understand any details.”
“Buying and owning a home has long been considered the pinnacle of the American dream and a way for families to invest and build lifetime wealth. But because of the recent high inflation and interest rates caused by the previous administration, that American dream has been increasingly out of reach for too many of our citizens, especially first-time homebuyers,” the order says. “At the same time, a growing share of single-family homes, often concentrated in certain communities, have been purchased by large Wall Street investors, crowding out families seeking to buy homes.”
According to the Department of Housing and Urban Development, large corporate investors “own an increasing share of single-family homes, taking properties off the market for individual homebuyers and putting upward pressure on home prices and rents.” The 2023 report explained that such investors primarily focus on the Sun Belt and low-income areas.
