Shares of homebuilders Lennar and Taylor Morrison Home rose on Tuesday following a Bloomberg News report that the two companies were among a cohort working on a proposed "Trump Homes" plan aimed at easing the U.S. housing affordability crunch.
The two stocks both jumped 4% on Tuesday.
Builders including Lennar and Taylor Morrison Home have discussed a large-scale program that would sell entry-level homes into a pathway-to-ownership program funded by private investors, Bloomberg wrote, citing people familiar with the plan. One version of the plan sees investors renting the homes out to tenants, with a portion of monthly payments counting toward a future down payment should they choose to buy after three years.
Amid elevated interest rates and prices, housing affordability has emerged as a key issue for President Donald Trump. Earlier this month, Trump said that the U.S. should ban large institutional investors from buying single-family homes, arguing that corporate ownership has only exacerbated the housing affordability crisis. The president has also repeatedly said he wants to help first-time buyers, but without triggering a broad decline in existing home prices.
"I don't want to drive housing prices down. I want to drive housing prices up for people who own homes," he said at the World Economic Forum in Davos, Switzerland.
The proposal, dubbed "Trump Homes" by industry players, could ultimately involve as many as one million homes, Bloomberg reported. A White House official told the outlet that the administration is not actively considering the plan.
After a rough year last year, Lennar shares are off to a good start for 2026, up 9%.
