A cohort of major homebuilders are reportedly working on a proposal to create one million “Trump Homes” as part of a new program to accommodate first-time buyers.
According to a Bloomberg report based on input from unnamed “sources familiar with the proposal,” the “Trump Homes” would be entry-level residences in a pathway-to-ownership program funded by private investors. One version of this program involves investors renting the homes to tenants, with a portion of monthly payments going to a future down payment. The renters would be able to buy the homes after three years of tenancy.
If one million homes were created, the program could deliver more than $250 billion worth of housing. However, a White House official told Bloomberg that the administration was not considering this program and none of the homebuilders reportedly involved in the program commented on the report.
And in concept, having private investors owning the new homes would appear to contradict a recent executive order by the president seeking to restrict institutional investor ownership of single-family housing.
So why report on something you can’t validate??? Journalistic integrity has sadly been discarded.
It’s called clickbait…..worthless!!!
Sounds like you can’t stand anything good happening if Trump gets any credit.
That’s your real objection.
Sad.
Hey, we heard a rumor and we are going to put it out there as news.
Would you rather have in censored?
In the old days we called that equity sharing. If a person can afford to rent a $1M house, they would probably buy instead of rent.
What is needed are first-time buyer, entry level homes. His plan doesn’t help.
Read the article again Elaine–it’s not $1M homes that are being built, it’s 1 million entry level, first time home buyer homes to be built. That means homes that are affordable for the first time home buyer. I think it’s great!
Agree! Ty, Elaine!
I wish this country could just get its shit together. So tired of the division, the economy, the costs and the bipolar real estate economy. We need normalcy, real goals with a path forward and it’s just not happening. The undo stress it is putting on hardworking Americans is beyond sad.
Hard to trust an unnamed source and have the White House or any of the builders endorse it. Not that it’s a bad idea.
Here in Texas (and I’m sure other states) we DO have entry level homes. They are called Lennar Homes. Some smaller ones sell for as low as the $150’s. The issue is people prioritize their Starbucks, mani/pedi, Uber eats, restaurants, etc. over owning a home.
It says above statement they are “entry level homes”. What is the objection to this?
What President Trump ought to do is issue an executive order requiring Wall Street corporate owners of SFR homes to divest. This would fulfill his promise of banning these corporate institutions from competing in this SFR market. Their investment in this sector should be zero percent. ZERO percent. In phasing the divestment, the “1-million Trump Homes” don’t have to be new construction. They could be these divested homes that were removed from owner-occupied ownership opportunity when corporations purchased them. They already have renters. Some of these renters could become owners. It wouldn’t be rocket-science to figure out the mechanics of this divestiture, but it could certainly jump-start ownership, providing higher owner-occupancy ratios in communities, and in my opinion, making those communities stronger. Builders will find a way to build. Local and state jurisdictions will grapple with affordability, always. But it has been proven time and again, that higher owner-occupancy rates provide healthier and more stable communities, so, a good base for growth.
It’s a germ of an idea that needs to be fleshed out. NAR, all their brokers and agents, should get behind it and promote it. And the builders should cooperate fully with the real estate community for every sale they make. Anything less will be forgotten and meaningless.