Inventory (Tables)

3 Months Ended

Mar. 31, 2026

A summary of our inventory is as follows (in thousands):


	March 31, 2026		December 31, 2025
Homes completed or under construction	$	615,412	$	621,677
Land and lots - developed and under development	1,515,110		1,452,072
Land held for future development(1)	14,482		14,481
Land held for sale	10,981		10,981
Total inventory	$	2,155,985	$	2,099,211

(1)Land held for future development consists of raw land parcels where development activities have been postponed due to market conditions or other factors. All applicable carrying costs, including property taxes, are expensed as incurred.

As of March 31, 2026, the Company reviewed the performance and outlook for all of its communities for indicators of potential impairment and performed detailed impairment analysis when such indicators were identified. For the three months ended March 31, 2026, the Company recorded a $0.9 million impairment charge to reduce the carrying value of inventory to fair value. This impairment charge was included in cost of residential units in our consolidated statements of income.

For the three months ended March 31, 2025, the Company did not record an impairment adjustment to reduce the carrying value of communities or land inventory to fair value.

Summary of Real Estate Inventory Capitalized Interest Costs

A summary of interest costs incurred, capitalized, and expensed is as follows (in thousands):


	Three Months Ended March 31,
	2026			2025
Interest capitalized at beginning of period	$	29,742		$	26,621
Interest incurred	2,960			3,441
Interest charged to cost of revenues	(2,124)			(2,262)
Interest capitalized at end of period	$	30,578		$	27,800

Capitalized interest as a percentage of inventory	1.4		%	1.4		%