Warranties |
6 Months Ended |
|---|---|
Jun. 30, 2026 | |
| Warranties [Abstract] | |
| Warranties | 7. Warranties
Estimated future direct warranty costs are accrued and charged to cost of home sales revenues in the period when the related home sales revenues are recognized. Amounts accrued, which are included in accrued expenses and other liabilities on the condensed consolidated balance sheets, are based upon historical experience rates. As of June 30, 2026 and December 31, 2025, our warranty reserve was $12.5 million and $14.1 million, respectively. We subsequently assess the adequacy of our warranty accrual on a quarterly basis through a model that incorporates historical payment trends and we adjust the amounts recorded, if necessary. Based on warranty payment trends relative to our estimates at the time of home closing, we reduced our warranty reserve by $0.6 million and $3.6 million during the three and six months ended June 30, 2026, respectively, which is included as a reduction to cost of home sales revenues on our condensed consolidated statements of operations. We increased our warranty reserve by $0.6 million during the three months ended June 30, 2025, and we reduced our warranty reserve by $1.4 million during the six months ended June 30, 2025. |