These Homebuilder Stocks Get a Boost Following Report of Plan to Build ‘Trump Homes’

Several homebuilder stocks got a boost following a report the Trump administration is considering a program to build more new homes.

Lennar (LEN) and other homebuilders have worked on a pitch to the Trump administration to build up to 1 million new homes that could become part of a rent-to-own program, Bloomberg reported Tuesday.

Shares of Lennar surged over 5% in recent trading, after adding 3% Tuesday in the wake of the report. Taylor Morrison Home Corp. (TMHC), KB Home (KBH), PulteGroup (PHM), and D.R. Horton (DHI) also rose, extending Tuesday’s gains during a weak stretch for broader markets that saw the S&P 500 decline.

A White House official told Investopedia the Trump administration “is constantly exploring new policy actions” related to affordability, but characterized reporting ahead of an official announcement as “speculation.” Lennar declined to remark on the report. A spokesperson for Taylor Morrison said that while the company hasn’t worked on the plan, it’s “ready to work alongside our builder peers to support more Americans in achieving homeownership.”

One version of the proposal floated by homebuilders could see the companies build and sell entry-level “Trump homes” backed by private investors, per Bloomberg. Those homes would then offer a pathway to ownership for renters, in which the first three years of rent payments could be counted toward a down payment, the report said.

However, many details such as the potential involvement of federally-backed mortgages, have yet to be ironed out, Bloomberg reported.

UPDATE—Feb. 4, 2026: This article has been updated since it was first published to reflect more recent developments.