Real estate consists of the following (in thousands):


	As of
	September 30, 2026		December 31, 2025
Homes completed and under construction (1)	$	2,045,060	$	2,069,548
Finished home sites and home sites under development (2)	3,842,767		3,917,572
Consolidated real estate not owned (3)	126,684		—
Total	$	6,014,511	$	5,987,120

(1)Includes the allocated land and land development costs associated with each lot for sold and unsold homes.

(2)Includes raw land, land held for development, land held for sale and communities in mothball status, less impairments, if any. Land held for development, land held for sale and communities in mothball status totaled $267.3 million and $164.4 million as of September 30, 2026 and December 31, 2025, respectively. We do not capitalize interest for these inactive assets, and all ongoing costs of land ownership (i.e. property taxes, homeowner association dues, etc.) are expensed as incurred.

(3)Represents purchase contracts where we have a specific performance obligation. See Note 3 for additional information on consolidated real estate not owned.

Subject to sufficient qualifying assets, we capitalize our development period interest costs incurred to applicable qualifying assets in connection with our real estate development and construction activities. Capitalized interest is allocated to active Real estate when incurred and charged to Cost of closings when the related property is delivered. A summary of our capitalized interest is as follows (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2026		2025		2026		2025
Capitalized interest, beginning of period	$	86,737	$	63,814	$	77,064	$	53,678
Interest incurred	20,218		20,050		60,337		54,759
Interest expensed	(1,352)		—		(4,126)		—
Interest amortized to cost of home and land closings	(13,434)		(12,663)		(41,106)		(37,236)
Capitalized interest, end of period	$	92,169	$	71,201	$	92,169	$	71,201

As discussed in Note 1, and in accordance with ASC 360-10, all of our land inventory and related real estate assets are periodically reviewed for recoverability when certain criteria are met, but at least annually, as our inventory is considered “long-lived” in accordance with GAAP. Based on these reviews, we recorded the following impairment charges during the three and nine months ended September 30, 2026 and 2025 (in thousands).


	Three Months Ended September 30,				Nine Months Ended September 30,
	2026		2025		2026		2025
Real estate inventory impairments:
West	$	1,735	$	543	$	1,735	$	543
Central	3,973		1,243		7,437		1,243
East	$	931	6,907		$	3,476	6,907
Total	$	6,639	$	8,693	$	12,648	$	8,693
Impairments of land held for sale:
West	$	—	$	—	$	—	$	—
Central	—		—		—		—
East	$	—	599		$	—	599
Total	$	—	$	599	$	—	$	599
Total impairments:
West	$	1,735	543		$	1,735	543
Central	3,973		1,243		7,437		1,243
East	$	931	7,506		$	3,476	7,506
Total	$	6,639	$	9,292	$	12,648	$	9,292

As discussed in Note 1, non-refundable deposits are expensed to Cost of closings when a land acquisition is terminated or no longer considered probable. The following tables summarizes the write-offs of non-refundable deposits and associated pre-acquisition costs for terminated land contracts during the periods presented (in thousands):


	Three Months Ended September 30,					Nine Months Ended September 30,
	2026			2025		2026		2025
Terminated option/purchase contracts and related pre-acquisition costs:
West	$	30		$	2,544	$	256	$	3,667
Central	7			104		499		663
East	(680)		(1)	3,151		$	251	7,107
Total	$	(643)		$	5,799	$	1,006	$	11,437