REAL ESTATE INVENTORY AND LAND DEPOSITS

3 Months Ended

Mar. 31, 2022

Inventory consists of the following (in thousands):


	As of
	March 31, 2022		December 31, 2021
Real estate developed and under development	$	3,895,167	$	3,895,681
Real estate held for development or held for sale (1)	72,022		70,305
Operating communities (2)	1,554,551		1,309,551
Capitalized interest	177,969		168,670
Total owned inventory	5,699,709		5,444,207
Consolidated real estate not owned	43,418		55,314
Total real estate inventory	$	5,743,127	$	5,499,521

(1) Real estate held for development or held for sale includes properties which are not in active production. This includes raw land recently purchased or awaiting entitlement, and, if applicable, long-term strategic assets.

(2) Operating communities consist of all vertical construction costs relating to homes in progress and completed homes.

The development status of our land inventory is as follows (dollars in thousands):


	As of
	March 31, 2022			December 31, 2021
	Owned Lots	Book Value of Land and Development		Owned Lots	Book Value of Land and Development
Homebuilding owned lots
Raw	3,933	$	179,376	4,017	$	178,952
Partially developed	23,237	1,572,778		24,636	1,568,967
Finished	19,999	2,124,655		19,360	2,119,128

Total homebuilding owned lots	47,169	3,876,809		48,013	3,867,047
Other assets	5,298	90,380		5,298	98,939
Total owned lots	52,467	$	3,967,189	53,311	$	3,965,986

We have land option purchase contracts, land banking arrangements and other controlled lot agreements. We do not have title to the properties, and the creditors generally only have recourse against us in the form of retaining any non-refundable deposits. We are also not legally obligated to purchase the balance of the lots. Deposits related to these lots are capitalized when paid and classified as Land deposits until the associated property is purchased. The table below presents a summary of our controlled lots for the following periods (dollars in thousands):


	As of
	March 31, 2022					December 31, 2021
	Controlled Lots	Purchase Price		Land Deposit (1)		Controlled Lots	Purchase Price		Land Deposit (1)
Homebuilding controlled lots
Land option purchase contracts	7,831	$	457,796	$	52,213	8,360	$	507,161	$	57,554
Land banking arrangements	7,117	1,000,881		136,404		5,731	749,813		117,721
Other controlled lots	14,766	1,303,421		49,792		14,671	1,338,284		38,505
Total controlled lots	29,714	$	2,762,098	$	238,409	28,762	$	2,595,258	$	213,780

(1) Land deposits noted are all non-refundable and represent our exposure to loss related to our contracts with third parties, unconsolidated entities, and land banking arrangements.. In addition, at March 31, 2022 and December 31, 2021 we had refundable deposits of $22.5 million and $15.7 million respectively.

Capitalized Interest — Interest capitalized, incurred and amortized is as follows (in thousands):


	Three Months Ended March 31,
	2022		2021
Interest capitalized - beginning of period	$	168,670	$	163,780
Interest incurred and capitalized	39,729		37,719
Interest amortized to cost of home closings	(30,430)		(27,325)
Interest capitalized - end of period	$	177,969	$	174,174