Trump Homes Housing Plan Targets 1 Million Units With Rent-to-Own

Large homebuilders are reviewing a plan to supply affordable housing for first-time buyers, bringing attention to the so-called Trump Homes housing plan. The proposal envisions large-scale construction of entry-level homes and includes a rent-to-own model intended to reduce barriers to homeownership.

Under the plan, tenants would be able to convert three years of rent payments into a down payment, a structure known as rent-to-own. This would allow renters with limited upfront capital to accumulate funds during the lease period and then transition into purchasing a home.

Industry officials have said that institutional support would be needed to secure profitability, including easing mortgage guarantee requirements from Fannie Mae and Freddie Mac. The industry has raised these proposals with the White House, which responded that the plan remains “speculative” and has taken a cautious stance.

Donald Trump has called for expanding housing supply while opposing declines in existing home prices, sending mixed signals to the market. As a result, outlooks differ on whether policy support for large-scale new housing construction will be forthcoming.

The Trump Homes housing plan aims to supply up to 1 million low-cost housing units to ease the burden on households without homes. However, the proposal remains in an early discussion stage, and both its feasibility and the extent of federal support remain unclear.

On Realtor.com cited a report from Bloomberg stating that major builders including Lennar and Taylor Morrison are participating in the plan. According to the report, the project would be financed by private investors rather than government funds.

The initiative is described as a private-sector model that seeks to secure both profitability and housing supply through scale, with a focus on lowering entry barriers for first-time homebuyers.

By Eunyoung Lee
lee.eunyoung6@koreadaily.com