"We'll Save Your Home": U.S. Builders Move to Supply 1 Million "Trump Homes"

Lennar, Taylor Morrison Home and others join...proposed to the administration last year
"Live for three years and use rent as a down payment to buy a home"

Major U.S. homebuilders are pushing ahead with a large-scale development project called "Trump Homes" to supply 1 million low-priced homes. The project is intended to ease the burden of home purchases at a time when high interest rates are worsening the housing shortage.

Bloomberg reported on the 3rd (local time) that "builders such as Lennar and Taylor Morrison Home have joined this proposal."

A U.S. house listed for sale on the real estate platform Zillow.

The companies are reportedly continuing discussions on a "pathway-to-ownership" program funded by private investors. This program is a type of rent-to-own housing scheme, with the goal of helping people buy homes at lower prices. First, an investor purchases a home and rents it out; after a three-year lease term, the tenant can buy the home. A key feature is that part of the rent paid during that period is counted toward the down payment.

Bloomberg projected that the supply volume could vary depending on how many builders participate, but could reach up to 1 million homes and a total value of $250 billion (KRW 362 trillion).

Industry sources say the construction sector already proposed the Trump Homes plan to the administration last year and has been continuously refining the details. Bloomberg assessed that this "demonstrates builders' eagerness to win favor with the White House." A Taylor Morrison Home representative said, "We are encouraged that discussions are underway to help more Americans move toward homeownership," but added, "It is too early to comment on specific details."

The White House drew a line regarding whether it would move forward with the plan. A White House official dismissed it, saying, "The administration is not actively considering this plan." Another official added, "Many details, including what role federally backed mortgages should play, have not yet been decided."

Trump Donald, President of the United States, has recently issued several real estate policies, including directing Fannie Mae and Freddie Mac to purchase $200 billion worth of mortgage-backed securities (MBS). Yonhap News Agency.

For President Donald Trump, who is heading into the midterm elections, this could become a strong card to win over voters. Bloomberg noted, "These efforts by the construction industry are taking place at a time when the cost of buying a home is historically high," and pointed out that "it is widely recognized that the United States needs to add millions of homes to resolve the housing crisis." It added, "The proposal is similar to Trump's 'TrumpRx' (a government-run prescription drug sales website) idea, which he used to try to motivate voters in the upcoming midterm elections."

President Trump has intervened in the real estate market on multiple occasions. Last month, he ordered housing finance agencies Fannie Mae and Freddie Mac to purchase $200 billion (KRW 290 trillion) worth of mortgage-backed securities (MBS) in an effort to lower home purchase costs.

Meanwhile, news of the Trump Homes initiative sent homebuilder stocks surging on the day. Shares of major U.S. builders such as Lennar, Taylor Morrison Home, D.R. Horton, and PulteGroup all rebounded by around 5-7% in early trading on the New York Stock Exchange.