3. Real Estate Inventories and Capitalized Interest

Real estate inventories are summarized in the table below.

	March 31,		December 31,
	2014		2013
	(in thousands)

Land and land improvements held for development or sale	$	204,863	$	207,810
Work in progress	55,680		38,486
Completed inventories	27,718		25,372
Investments in amenities	8,568		8,625
Total real estate inventories	$	296,829	$	280,293

Work in progress includes homes and related home site costs in various stages of construction. Completed inventories consist of model homes and related home site costs used to facilitate sales and homes with certificates of occupancy. The carrying values of land and land improvements held for sale were $1.8 million as of both March 31, 2014 and December 31, 2013.

As of March 31, 2014 and December 31, 2013, single- and multi-family inventories represented approximately 90% and 89%, respectively, of total real estate inventories. As of March 31, 2014 and December 31, 2013, tower inventories, which consisted solely of land and land improvements, represented approximately 7% and 8%, respectively, of total real estate inventories.

Our capitalized interest activity is summarized in the table below.

	Three Months Ended March 31,
	2014			2013
	(in thousands)

Capitalized interest at the beginning of the period	$	15,443		$	7,959
Interest incurred	3,762			3,430
Interest expensed	(498		)	(885		)
Interest charged to cost of sales	(985		)	(493		)
Capitalized interest at the end of the period	$	17,722		$	10,011