Revenue from Contract with Customer

3 Months Ended

Mar. 31, 2023

Revenue from Contract with Customer [Abstract]

Revenue Recognition

REVENUE RECOGNITION

Disaggregation of Revenue

The following reflects the disaggregation of revenue by primary geographic market, type of customer, product type, and timing of revenue recognition for the three months ended March 31, 2023 and 2022 (in thousands):

	Three Months Ended March 31, 2023				Three Months Ended March 31, 2022
	Residential units revenue		Land and lots revenue		Residential units revenue		Land and lots revenue
Primary Geographical Market
Central	$	344,464	$	1,699	$	261,698	$	28,861
Southeast	105,898		—		102,963		94
Total revenues	$	450,362	$	1,699	$	364,661	$	28,955
Type of Customer
Homebuyers	$	450,362	$	—	$	364,661	$	—
Homebuilders and Multi-family Developers	—		1,699		—		28,955
Total revenues	$	450,362	$	1,699	$	364,661	$	28,955
Product Type
Residential units	$	450,362	$	—	$	364,661	$	—
Land and lots	—		1,699		—		28,955
Total revenues	$	450,362	$	1,699	$	364,661	$	28,955
Timing of Revenue Recognition
Transferred at a point in time	$	449,430	$	1,699	$	363,063	$	28,955
Transferred over time	932		—		1,598		—
Total revenues	$	450,362	$	1,699	$	364,661	$	28,955

Revenue recognized over time represents revenue from mechanic’s lien contracts.

Contract Balances

Opening and closing contract balances included in customer and builder deposits on the condensed consolidated balance sheets are as follows (in thousands):

	March 31, 2023		December 31, 2022
Customer and builder deposits	$	36,948	$	29,112

The difference between the opening and closing balances of customer and builder deposits results from the timing difference between the customers’ payments of deposits and the Company’s delivery of the home, impacted slightly by terminations of contracts.

The amount of deposits on residential units and land and lots held as of the beginning of the period and recognized as revenue during the three months ended March 31, 2023 and 2022 are as follows (in thousands):

	Three Months Ended March 31,
	2023		2022
Type of Customer
Homebuyers	$	12,653	$	20,795
Homebuilders and Multi-Family Developers	—		100
Total deposits recognized as revenue	$	12,653	$	20,895

Transaction Price Allocated to the Remaining Performance Obligations

The aggregate amount of transaction price allocated to the remaining performance obligations on our land sale and lot option contracts is $5.3 million. The Company will recognize the remaining revenue when the lots are taken down, or upon closing for the sale of a land parcel, which is expected to occur in the remainder of 2023.

The timing of lot takedowns is contingent upon a number of factors, including customer needs, the number of lots being purchased, receipt of acceptance of the plat by the municipality, weather-related delays, and agreed-upon lot takedown schedules.

Our contracts with homebuyers have a duration of less than one year. As such, the Company uses the practical expedient as allowed under ASC 606, Revenue from Contracts with Customers, and therefore has not disclosed the transaction price allocated to remaining performance obligations as of the end of the reporting period.