Variable Interest Entities ("VIEs")

9 Months Ended

Sep. 30, 2025

Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure [Abstract]

We generally do not engage in land development. Instead, we typically acquire finished building lots at market prices from various third party land development entities under lot purchase agreements ("LPAs"). The LPAs require deposits that may be forfeited if we fail to perform under the LPAs. The deposits required under the LPAs are in the form of cash or letters of credit in varying amounts, and typically range up to 10% of the aggregate purchase price of the finished lots.

The deposit placed by us pursuant to the LPA is deemed to be a variable interest in the respective development entities. Those development entities are deemed to be VIEs. Therefore, the development entities with which we enter into LPAs, including the joint venture limited liability corporations discussed below, are evaluated for possible consolidation by us. We have concluded that we are not the primary beneficiary of the development entities with which we enter into LPAs, and therefore, we do not consolidate any of these VIEs.

As of September 30, 2025, we controlled approximately 166,050 lots under LPAs with third parties through deposits in cash and letters of credit totaling approximately $907,600 and $4,000, respectively. Our sole legal obligation and economic loss for failure to perform under these LPAs is limited to the amount of the deposit pursuant to the liquidated damage provisions contained in the LPAs and, in very limited circumstances, specific performance obligations. For the three and nine months ended September 30, 2025, we incurred pre-tax impairment charges on lot deposits of approximately $18,900 and $40,100, respectively. For the three months ended September 30, 2024, we recorded pre-tax impairment charges on lot deposits of approximately $3,900. For the nine months ended September 30, 2024, we recorded a net expense reversal of approximately $4,900 related to previously impaired lot deposits. Our contract land deposit asset is shown net of a $85,368 and $58,597 impairment allowance as of September 30, 2025 and December 31, 2024, respectively.

In addition, we have certain properties under contract with land owners that are expected to yield approximately 47,100 lots, which are not included in the number of total lots controlled. Some of these properties may require rezoning or other approvals to achieve the expected yield. These properties are controlled with cash deposits totaling approximately $46,100 as of September 30, 2025, of which approximately $10,400 is refundable if certain contractual conditions are not met. We generally expect to assign the raw land contracts to a land developer and simultaneously enter into an LPA with the assignee if the project is determined to be feasible.

Our total risk of loss related to contract land deposits is limited to the amount of the deposits pursuant to the liquidated damages provision of the LPAs. As of September 30, 2025 and December 31, 2024, our total risk of loss was as follows:


	September 30, 2025		December 31, 2024
Contract land deposits	$	953,676	$	785,272
Allowance for losses on contract land deposits	(85,368)		(58,597)
Contract land deposits, net	868,308		726,675
Contingent obligations in the form of letters of credit	4,015		8,722
Total risk of loss	$	872,323	$	735,397