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Real estate inventory and capitalized interest
 6 Months Ended
Jun. 30, 2026
Real estate inventory and capitalized interest [Abstract]  
Real estate inventory and capitalized interest Real estate inventory and capitalized interest:
A summary of real estate inventory is as follows as of June 30, 2026 and December 31, 2025 (in thousands):
June 30,
2026		December 31,
2025
Lots held for construction$71,213 $81,844 
Homes under construction, completed homes and model homes260,003 216,793 
Total real estate inventory$331,216 $298,637 
Real estate inventory consists primarily of the capitalized costs of finished homes, homes under construction, and residential lots. The Company includes the costs of lot acquisitions, development, direct home construction, capitalized interest, closing costs and direct and certain indirect overhead costs incurred during home construction in real estate inventory.
Real estate inventory is stated at cost unless a community is determined to be impaired, at which point the inventory is written down to fair value as required by ASC Topic 360-10, Property, Plant, and Equipment. The Company reviews its real estate inventory for indicators of potential impairment on a quarterly basis at the community level considering market and economic conditions, current sales absorption rates and recent profitability of new home sales. When an indicator of impairment is identified, the Company prepares and analyzes cash flows at the community level on an undiscounted basis. If the undiscounted cash flows are less than the community's carrying value, the Company generally estimates the fair value using the estimated future discounted cash flows of the respective community. A community with a fair value less than its carrying value is written down to such fair value and resulting losses are reported within cost of home closings in the accompanying consolidated statements of income.

As of June 30, 2026 and December 31, 2025, the Company evaluated seven and two active communities with carrying values of $24.4 million and $10.1 million, respectively.

During the three and six months ended June 30, 2026, the Company recognized inventory impairment charges in the Southeast reporting segment of $2.6 million and $3.5 million, respectively, related to two and three communities, respectively. During both the three and six months ended June 30, 2026, inventory impairment charges in the Central reporting segment were $0.5 million, related to one community. An impairment charge of $0.6 million was recognized in the Central reporting segment during the six months ended June 30, 2025 related to one community. No impairment charges were recognized during the three months ended June 30, 2025.

The below table summarizes the significant quantitative unobservable inputs used in the Company’s discounted cash flow model to determine the fair value of its communities for which the Company recorded impairment charges as of June 30, 2026 and December 31, 2025:

June 30,
2026		December 31,
2025
Average selling price
$272,000 to $305,000
$267,000 to $305,000
Closings per month
2 to 5
1 to 5
Discount rate12%12%
The Company capitalizes into real estate inventory interest costs incurred on homes under construction during the construction period until substantial completion. The Company does not capitalize interest on homes where construction has been suspended.
A summary of capitalized interest is as follows (in thousands):
Three months ended June 30,Six months ended June 30,
2026202520262025
Capitalized interest, beginning of period$1,308 $325 $991 $253 
Interest incurred1,295 1,645 3,020 2,539 
Interest expensed(640)(772)(1,488)(1,438)
Interest charged to cost of home closings(942)(365)(1,502)(521)
Capitalized interest, end of period$1,021 $833 $1,021 $833