Homebuilding stocks gain on reports of "Trump Homes" plan

Investing.com -- Homebuilding stocks surged Tuesday following a Bloomberg report that major builders are developing a plan for a "Trump Homes" program aimed at addressing the U.S. housing affordability crisis.

Lennar Corp. jumped over 6.7% while Taylor Morrison Home Corp. climbed roughly 5.5% after the news broke.

According to people familiar with the proposal, the program would allow private investors to deploy billions of dollars into housing development. Under one version of the plan, builders would sell entry-level homes into a pathway-to-ownership program funded by private capital.

The program would feature a rent-to-own model where tenants' monthly payments over three years could count toward a down payment if they wished to purchase the home.

The report added that builders have discussed potentially developing as many as 1 million homes through the initiative, which could deliver more than $250 billion worth of housing. However, the program would be complicated to implement and might not gain enough support to move forward, the publication cautioned.

The White House is reportedly not currently actively considering the plan, an official said.

The proposal comes as President Trump has promoted various initiatives to lower housing costs, including a plan to reduce mortgage rates by directing Fannie Mae and Freddie Mac to purchase mortgage-backed securities, and efforts to ban institutional investors from acquiring single-family rental homes.

You May Also Be Interested In

• Apple suing OpenAI over alleged misappropriation of trade secrets
• Scribe Therapeutics Files for Nasdaq IPO
• AutoZone promotes Grace Sharpley to SVP of Finance