Inventory (Tables)

3 Months Ended

Mar. 31, 2023

Inventory Disclosure [Abstract]

Schedule of Real Estate Inventory

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

	March 31, 2023		December 31, 2022
Homes completed or under construction	$	525,571	$	603,953
Land and lots - developed and under development	796,826		768,194
Land held for future development(1)	48,453		48,369
Land held for sale	2,164		2,164
Total inventory	$	1,373,014	$	1,422,680

(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, 2023, 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. As of March 31, 2023, the Company performed further impairment analysis of one selling community with indicators of impairment with a combined corresponding carrying value of approximately $26.6 million. For the three months ended March 31, 2023 and 2022, the Company did not record an impairment adjustment to reduce the carrying value of communities 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,
	2023			2022
Interest capitalized at beginning of period	$	22,752		$	19,950
Interest incurred	3,743			3,734
Interest charged to cost of revenues	(3,648)			(2,933)
Interest capitalized at end of period	$	22,847		$	20,751
Capitalized interest as a percentage of inventory	1.7		%	1.6		%