
in thousands	As of June 30, 2025		As of September 30, 2024
Homes under construction	$	914,261	$	754,705
Land under development	1,073,661		1,023,188
Land held for future development	19,489		19,879
Land held for sale	44,024		19,086
Capitalized interest	137,759		124,182
Model homes	102,869		99,600
Total owned inventory	$	2,292,063	$	2,040,640

Homes under construction include homes substantially finished and ready for delivery and homes in various stages of construction, including costs of the underlying lot, direct construction costs and capitalized indirect costs. As of June 30, 2025, we had 2,539 homes under construction, including 1,376 speculative (spec) homes totaling $490.5 million (1,004 in-process spec homes totaling $332.2 million, and 372 finished spec homes totaling $158.3 million). As of September 30, 2024, we had 2,315 homes under construction, including 1,154 spec homes totaling $360.9 million (827 in-process spec homes totaling $231.4 million, and 327 finished spec units totaling $129.5 million).

Land under development consists principally of land acquisition, land development and other common costs. These land related costs are allocated to individual lots on a pro-rata basis, and the lot costs are transferred to homes under construction when home construction begins for the respective lots. Certain of the fully developed lots in this category are reserved by a customer deposit or sales contract.

Land held for future development consists of communities for which construction and development activities are expected to occur in the future or have been idled and are stated at cost unless facts and circumstances indicate that the carrying value of the assets may not be recoverable. All applicable carrying costs, such as interest and real estate taxes, are expensed as incurred.

Land held for sale includes land and lots that do not fit within our homebuilding programs or strategic plans in certain markets, and land is classified as held for sale once certain criteria are met (refer to Note 2 to the consolidated financial statements within our 2024 Annual Report). These assets are recorded at the lower of the carrying value or fair value less costs to sell.

The amount of interest we are able to capitalize depends on our qualified inventory balance, which considers the status of our inventory holdings. Our qualified inventory balance includes the majority of our homes under construction and land under development but excludes land held for future development and land held for sale (see Note 5 for additional information on capitalized interest).

Total owned inventory by reportable segment and Corporate and unallocated is presented in the table below as of June 30, 2025 and September 30, 2024:


in thousands	Projects in Progress(a)		Land Held for Future Development		Land Held for Sale		Total Owned Inventory
June 30, 2025
West	$	1,117,885	$	3,483	$	24,811	$	1,146,179
East	457,064		10,888		14,357		482,309
Southeast	430,325		5,118		4,856		440,299
Corporate and unallocated(b)	223,276		—		—		223,276
Total	$	2,228,550	$	19,489	$	44,024	$	2,292,063
September 30, 2024
West	$	1,023,140	$	3,483	$	17,110	$	1,043,733
East	411,914		10,888		1,300		424,102
Southeast	365,676		5,508		676		371,860
Corporate and unallocated(b)	200,945		—		—		200,945
Total	$	2,001,675	$	19,879	$	19,086	$	2,040,640



	Three Months Ended June 30,				Nine Months Ended June 30,
in thousands	2025		2024		2025		2024
Projects in Progress:
West	$	2,236	$	—	$	2,236	$	—

Southeast	5,404		—		5,404		—
Corporate and unallocated(a)	1,002		—		1,002		—
Total impairment charges on projects in progress	8,642		—		8,642		—
Land Held for Sale:
West	845		—		845		—


Corporate and unallocated(a)	621		—		621		—
Total impairment charges on land held for sale	1,466		—		1,466		—
Abandonments:
West	—		9		528		9
East	—		91		—		91
Southeast	231		100		231		100

Total abandonments charges	231		200		759		200






Total impairment and abandonment charges	$	10,339	$	200	$	10,867	$	200

We assess our projects in progress inventory for indicators of impairment at the community level on a quarterly basis. If indicators of impairment are present for a community with more than ten homes remaining to close, we perform a recoverability test by comparing the expected undiscounted cash flows for the community to its carrying value. If the aggregate undiscounted cash flows are in excess of the carrying value, the asset is considered to be recoverable and is not impaired. If the carrying value exceeds the aggregate undiscounted cash flows, we perform a discounted cash flow analysis to determine the fair value of the community, and impairment charges are recorded if the fair value of the community's inventory is less than its carrying value.

Valuation assumptions for communities tested for impairment are specific to each community. For projects in progress impaired during the periods presented, we determined the fair value of each community by discounting its estimated future cash flows at a rate commensurate with the risks associated with the underlying community. The discount rate used depends on (1) community specific factors such as product types, development stage and expected duration of the project, and competitive factors influencing the sales performance of the community, (2) local market factors such as employment levels, consumer confidence and existing supply of new and used homes for sale, and (3) other specific factors. The estimated future cash flows for each community were determined based on the expected pace of closings and average sales price less expected costs for land acquisition and land development, direct construction, overhead and interest. The assumptions used in the determination of fair value of projects in progress communities are based on factors known to us at the time such estimates are made and our expectations of future operations and market conditions. Due to uncertainties in the estimation process, the significant volatility in market conditions, the long life cycles of many communities, and potential changes in our strategy related to certain communities, actual results could differ significantly from our estimates.

During the three and nine months ended June 30, 2025, we performed discounted cash flow analyses to determine the fair value of two projects in progress communities, one located in our Phoenix market and the other in our Orlando market. These analyses led to an $8.6 million projects in progress impairment charge, principally due to a reduction in price that is other than temporary based on current competitive and market dynamics. No projects in progress impairments were recognized during the three and nine ended June 30, 2024.


$ in thousands	Results of Impairment Analysis
	# of Communities Impaired	# of Lots Impaired	Impairment Charge		Estimated Fair Value of Impaired Inventory at Time of Impairment(b)
Three Months Ended June 30, 2025
West	1	24	$	2,236	$	5,003

Southeast	1	65	5,404		11,837
Corporate and unallocated(a)	—	—	1,002		2,210
Total	2	89	$	8,642	$	19,050

(b) Projects in progress assets are measured at fair value on a non-recurring basis when events and circumstances indicate that their carrying value is not recoverable. The fair value of projects in progress is determined using Level 3 unobservable inputs. Refer to Note 9 for further discussion of our fair value measurements and hierarchy levels.

We evaluate the fair value less cost to sell of a land held for sale asset when indicators of impairment are present. Impairments on land held for sale generally represent write downs of these properties from their carrying values to estimated fair value less cost to sell based on executed sales contracts, current sales prices for comparable assets in the area, recent market analysis studies, appraisals, recent legitimate offers and listing prices of similar properties, as applicable. Absent an executed sales contract, our assumptions related to land sales prices are based on factors known to us at the time such estimates are made and require significant judgment because the real estate market is highly sensitive to changes in economic conditions, and our estimates of sale prices could differ significantly from actual results.

In conjunction with the discounted cash flow analysis conducted for the project in progress community in Phoenix discussed above, we performed a strategic review of this community and determined to sell a portion of the lots that were no longer aligned with our operating plans. As a result of this change in strategy, we reclassified 38 lots from project in progress to land held for sale and recognized a land held for sale impairment charge of $1.5 million during the three and nine months ended June 30, 2025. No land held for sale impairments were recognized during the three and nine ended June 30, 2024.


$ in thousands	Results of Impairment Analysis
	# of Communities Impaired	# of Lots Impaired	Impairment Charge		Estimated Fair Value Less Cost to Sell of Impaired Inventory at Time of Impairment(b)
Three Months Ended June 30, 2025
West	1	38	$	845	$	3,686


Corporate and unallocated(a)	—	—	621		—
Total	1	38	$	1,466	$	3,686

(b) Land held for sale assets are measured at fair value less cost to sell on a non-recurring basis when events and circumstances indicate that their carrying value is not recoverable. The fair values of land held for sale assets are determined using Level 3 unobservable inputs. Refer to Note 9 for further discussion of our fair value measurements and hierarchy levels.

From time to time, we may determine to abandon lots or not exercise certain option agreements that are not projected to produce adequate results or no longer fit with our long-term strategic plan. Additionally, in certain limited instances, we are forced to abandon lots due to seller non-performance, permitting or other regulatory issues that do not allow us to build on those lots. If we intend to no longer pursue the purchase of property, we record an abandonment charge to earnings for the non-refundable deposit amount and any related capitalized costs in the period such decision is made.

We recognized $0.2 million and $0.8 million of abandonment charges during the three and nine months ended June 30, 2025, respectively. We recognized $0.2 million of abandonment charges during the three and nine months ended June 30, 2024. As we grow our business in the years ahead, the dollar value of abandonment charges may also grow.

In addition to purchasing land directly, we utilize lot option agreements that enable us to defer acquiring portions of properties owned by third parties and unconsolidated entities until we have determined whether to exercise our lot option. The majority of our lot option agreements require a non-refundable cash deposit or issuance of an irrevocable letter of credit or surety bond based on a percentage of the purchase price of the land for the right to acquire lots during a specified period at a specified price. Purchase of the properties under these agreements is contingent upon satisfaction of certain requirements by us and the sellers. Under lot option agreements, our liability is generally limited to forfeiture of the non-refundable deposits, letters of credit or surety bonds, and other non-refundable amounts incurred. If the Company cancels a lot option agreement, the cancellation would result in a write-off of the related deposits and pre-acquisition costs but would not expose the Company to the overall risks or losses of the applicable entity we are purchasing from. We expect to exercise, subject to market conditions and seller satisfaction of contract terms, most of our remaining option agreements. Various factors, some of which are beyond our control, such as market conditions, weather conditions, and the timing of the completion of development activities, will have a significant impact on the timing of option exercises or whether lot options will be exercised at all.