Housing firms consider plan to build 1 million 'Trump Homes': report

Homebuilders are currently working on a plan to build nearly 1 million "Trump homes" as part of a proposal aimed at targeting the affordability in housing across the United States. Private firms would be allowed to use billions of dollars in the making of the new homes. The White House has yet to endorse the plan. 

Lennar Corp. and Taylor Morrison Home Corp. are two of the companies that have been tasked with working on the proposal, which has those building homes selling off the real estate to a pathway-to-ownership program that is backed by private investors, according to Bloomberg.

One proposal in the plan includes tenants paying rent to investors, but after three years, that money would be counted towards a down payment on the home if they wish to purchase it. The program would likely be complicated to implement.

The plan has been proposed by the homebuilders, but the White House is not actively considering it, according to the outlet, citing a White House official. Details surrounding the plan have yet to be determined.

“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 said. However, the spokesperson added that it's "too early to understand any details."

Some in the industry are colloquially using the term “Trump Homes” to describe the project, as the president has been pushing to bring down prices. The program, if implemented successfully, could bring down the cost of homeownership by increasing supply. However, factors are subject to change, and demand could also increase at the same time with more people looking to use the program for a starter home, possibly counteracting the effect of a larger housing supply.

The president has previously talked about other initiatives to bring down the cost of housing, including the banning of private equity firms from buying up single-family homes as well as others.