Homebuilding stocks saw a surge Tuesday following reports of a potential "Trump Homes" program. LEN jumped over 6.7% and Taylor Morrison Home Corp. climbed approximately 5.5%. The plan, according to sources, involves major builders working on a program to address the affordability crisis in U.S. housing. This news comes as the former President promotes initiatives to lower housing costs.

Under this potential program, private investors could deploy billions into housing development. The proposal includes a rent-to-own model where a portion of rent payments could count towards a down payment. Builders have discussed developing up to 1 million homes, potentially worth over $250 billion. However, implementation complexity could hinder progress.

The housing market has been a key focus for both parties. High interest rates and limited inventory have made homeownership difficult. The former president has previously expressed interest in policies to lower mortgage rates and curb institutional investors. The success of this plan hinges on securing enough support to move forward.

While the White House is reportedly not actively considering the plan, the market's reaction indicates the potential for significant impact. Investors are clearly reacting to the prospect of new initiatives to boost housing supply. The coming months will determine if the plan gains traction and ultimately impacts the housing market.