Several major U.S. homebuilders, including Lennar and Taylor Morrison, are reportedly exploring a collaborative plan to construct up to 1 million entry-level “Trump Homes” for first-time buyers, potentially featuring rent-to-own options where monthly payments over three years could apply toward a down payment. The initiative, reported by Bloomberg and industry sources, is aimed at addressing the ongoing housing affordability crisis by dramatically increasing the supply of starter homes.

The plan remains tentative, with uncertain builder support and no formal backing from the Trump administration. A Taylor Morrison spokesperson told Realtor.com that the plan to build Trump Homes, “isn’t something Taylor Morrison worked on and shouldn’t be positioned as such,” while Lennar declined to comment. Industry figures pitched the concept to the administration last year, but a White House official emphasized that any speculation about federal involvement is premature: “President Trump pledged to put an end to Joe Biden’s inflation and affordability crisis, and the administration is constantly exploring new policy actions to do just that. Until policy announcements are officially made, any reporting about potential action is pure speculation.”

The proposal would require adjustments to mortgage guarantees from Fannie Mae and Freddie Mac to be viable, as large-scale rent-to-own models carry risks for buyers. Realtor.com senior economist Joel Berner noted, “The reason this hasn’t been done before at a large scale is that rent-to-own just isn’t a very favorable proposition to buyers,” adding that it only suits a small subset willing to commit upfront while assuming home values remain stable. “Building more homes is great for buyers, and a large-scale building boom will make homes more affordable. Just build them. Sell them or rent them out as builders normally would.”

President Trump has repeatedly called for builders to “get going” on large-scale construction to restore the American Dream, though he has also emphasized preserving high home values for existing homeowners, warning against measures that might depress housing prices. The proposal remains in early discussion stages, with no confirmed commitment from either the administration or participating builders.