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


	December 31, 2025		December 31, 2024
Land and lots - developed and under development	$	1,452,072	$	1,234,532
Homes completed or under construction	621,677		678,198
Land held for future development(1)	14,481		14,481
Land held for sale	10,981		10,521
Total inventory	$	2,099,211	$	1,937,732

(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 December 31, 2025, the Company reviewed the performance and outlook for all of its communities and land inventory for indicators of potential impairment and performed detailed impairment analysis when such indicators were identified. For the year ended December 31, 2025, the Company did not record an impairment adjustment to reduce the carrying value of communities or land inventory to fair value.

For the year ended December 31, 2024, the Company recorded a $3.7 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 year ended December 31, 2023, the Company did not record an impairment adjustment to reduce the carrying value of impaired communities or land inventory to fair value.

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


	Years Ended December 31,
	2025			2024			2023
Interest capitalized at beginning of period	$	26,620		$	24,126		$	22,752
Interest incurred	12,676			13,910			14,628
Interest charged to cost of revenues	(9,554)			(11,416)			(13,254)
Interest capitalized at end of period	$	29,742		$	26,620		$	24,126

Capitalized interest as a percentage of inventory	1.4		%	1.4		%	1.6		%