Here's an interesting approach to the housing affordability crisis: Lennar Corp (LEN) and Taylor Morrison Home Corp (TMHC) are reportedly working on a massive plan to develop one million "Trump Homes" as part of President Donald Trump's push to make housing more accessible.

According to a Bloomberg report Tuesday, the proposal centers on building entry-level homes into a "pathway-to-ownership" program financed by private investors. The mechanics are straightforward: homes would be rented to tenants, and after three years, those monthly rent payments would convert into a down payment if the tenant decides to buy. It's essentially rent-to-own at scale.

The ultimate size of the program depends on whether more builders jump on board, but the tentative goal is ambitious—delivering $250 billion worth of housing. Private investors would shoulder the initial losses, according to the report.

The proposal was pitched to the Trump Administration in 2025, though the finer details are still being hammered out, the publication noted.

Markets seemed to like the news. On Tuesday, Lennar stock closed 3.43% higher at $112.53, while Taylor Morrison climbed 3.13% to close at $63.57.

Both Lennar and Taylor Morrison did not immediately respond to requests for comment.

Trump's Housing Push Gets Mixed Reviews

Over recent months, Trump has ramped up efforts to address housing affordability. In January, he signed an executive order aimed at curbing institutional buyers on Wall Street from scooping up single-family homes, trying to level the playing field for first-time buyers and young families.

The president also highlighted that Fannie Mae and Freddie Mac are sitting on about $200 billion in cash and announced plans to direct the purchase of $200 billion in mortgage bonds to push down mortgage rates and lower monthly payments.

The response has been split. Opendoor Technologies Inc. (OPEN) CEO Kaz Nejatian praised Trump's housing affordability efforts, calling his work "excellent." On the flip side, economist Peter Schiff criticized the proposals, arguing that the only real solution to making housing affordable in the U.S. is lowering home prices themselves.