Inventory

9 Months Ended

Sep. 30, 2024

Inventory Disclosure [Abstract]

Inventory

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

	September 30, 2024		December 31, 2023
Homes completed or under construction	$	689,488	$	559,488
Land and lots - developed and under development	1,206,257		921,241
Land held for future development(1)	14,946		48,991
Land held for sale	7,355		3,503
Total inventory	$	1,918,046	$	1,533,223

(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 September 30, 2024, the Company reviewed the performance and outlook for all of its communities and land inventory for indicators of potential impairment and performed a detailed impairment analysis when such indicators were identified. As of September 30, 2024, one selling community had an indicator of impairment with a carrying value of approximately $18.5 million. For the three and nine months ended September 30, 2024, the Company recorded a $1.3 million impairment adjustment to reduce the carrying value of the impaired community to fair value. For the three and nine months ended September 30, 2023, the Company did not record an impairment adjustment to reduce the carrying value of communities or land inventory to fair value.

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

	Three Months Ended September 30,						Nine Months Ended September 30,
	2024			2023			2024		2023
Interest capitalized at beginning of period	$	25,234		$	22,599		$	24,126	$	22,752
Interest incurred	3,375			3,641			10,298		11,008
Interest charged to cost of revenues	(2,864)			(2,971)			(8,679)		(10,491)
Interest capitalized at end of period	$	25,745		$	23,269		$	25,745	$	23,269
Capitalized interest as a percentage of inventory	1.3		%	1.6		%