
in thousands	As of March 31, 2026		As of September 30, 2025
Homes under construction	$	819,460	$	692,327
Land under development	1,082,296		1,065,702
Land held for future development	19,489		19,489
Land held for sale	65,772		47,368
Capitalized interest	147,786		131,845
Model homes	90,144		72,702
Land not owned under option agreements	27,925		—
Total inventory	$	2,252,872	$	2,029,433

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 March 31, 2026, we had 2,322 homes under construction, including 1,306 speculative (spec) homes totaling $448.6 million (893 in-process spec homes totaling $264.7 million, and 413 finished spec homes totaling $183.9 million). As of September 30, 2025, we had 1,800 homes under construction, including 1,078 spec homes totaling $417.4 million (577 in-process spec homes totaling $201.8 million, and 501 finished spec homes totaling $215.6 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 2025 Annual Report). These assets are recorded at the lower of the carrying value or fair value less cost 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).

Land not owned under option agreements includes the remaining contractual purchase price for certain land and lot option agreements that we account for as financing arrangements pursuant to ASC Subtopic 470-40, Product Financing Arrangements, which occurs when we are economically compelled to exercise the option and purchase the land, even though the Company has no direct obligation to pay these future amounts. For these contracts, the remaining purchase price is recorded within land not owned under option agreements with a corresponding liability recorded within obligations related to land not owned under option agreements within other liabilities on our condensed consolidated balance sheet.


in thousands	Projects in Progress(a)		Land Held for Future Development		Land Held for Sale		Total Inventory
March 31, 2026
West	$	1,009,839	$	3,483	$	53,135	$	1,066,457
East	436,030		10,888		7,200		454,118
Southeast	484,732		5,118		5,437		495,287
Corporate and unallocated(b)	237,010		—		—		237,010
Total	$	2,167,611	$	19,489	$	65,772	$	2,252,872
September 30, 2025
West	$	944,601	$	3,483	$	29,052	$	977,136
East	387,954		10,888		16,086		414,928
Southeast	418,497		5,118		2,230		425,845
Corporate and unallocated(b)	211,524		—		—		211,524
Total	$	1,962,576	$	19,489	$	47,368	$	2,029,433



	Three Months Ended March 31,				Six Months Ended March 31,
in thousands	2026		2025		2026		2025
Projects in Progress:
West	$	1,174	$	—	$	1,174	$	—


Corporate and unallocated(a)	121		—		121		—
Total impairment charges on projects in progress	1,295		—		1,295		—
Land Held for Sale:
West	$	—	$	—	45		—
East	—		—		878		—

Corporate and unallocated(a)	—		—		122		—
Total impairment charges on land held for sale	—		—		1,045		—
Abandonments:
West	—		528		1,304		528
East	—		—		21		—


Total abandonments charges	—		528		1,325		528






Total impairment and abandonment charges	$	1,295	$	528	$	3,665	$	528

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 six months ended March 31, 2026, we performed a discounted cash flow analysis to determine the fair value of one project in progress community located in our Houston market. This analysis led to a $1.3 million projects in progress impairment charge, principally due to a reduction in price driven by the competitive market dynamics. No projects in progress impairments were recognized during the three and six months ended March 31, 2025.


$ 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 March 31, 2026
West	1	37	$	1,174	$	5,072


Corporate and unallocated(a)	—	—	$	121	$	525
Total	1	37	$	1,295	$	5,597

(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.

No land held for sale impairments were recognized for the three months ended March 31, 2026. During the six months ended March 31, 2026, we recognized $1.0 million land held for sale impairment charges related to two communities in our West and East segments. Estimated fair value less selling cost for these impaired assets at the time of impairment was $14.0 million. The fair values of the impaired land held for sale assets were determined using Level 3 unobservable inputs. No land held for sale impairments were recognized during the three and six months ended March 31, 2025.

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.

No abandonment charges were recognized during the three months ended March 31, 2026. During the six months ended March 31, 2026, we recognized $1.3 million of abandonment charges. During the three and six months ended March 31, 2025, we recognized $0.5 million of abandonment charges. 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.