Quarterly report pursuant to Section 13 or 15(d)

Real Estate and Capitalized Interest (Tables)

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Real Estate and Capitalized Interest (Tables)
 9 Months Ended
Sep. 30, 2015
Inventory Disclosure [Abstract]  
Real estate properties
Real estate consists of the following (in thousands):
 
 
September 30, 2015
 
December 31, 2014
Homes under contract under construction (1)
 
$
505,527

 
$
328,931

Unsold homes, completed and under construction (1)
 
301,528

 
302,288

Model homes (1)
 
135,323

 
109,614

Finished home sites and home sites under development (1) (2)
 
1,146,312

 
1,136,849

 
 
$
2,088,690

 
$
1,877,682



(1)
Includes the allocated land and land development costs associated with each lot for these homes.
(2)
Includes raw land, land held for development and land held for sale. Land held for development primarily reflects    land and land development costs related to land where development activity is not currently underway but is expected to begin in the future. For these parcels, we may have chosen not to currently develop certain land holdings as they typically represent a portion or phases of a larger land parcel that we plan to build out over several years. We do not capitalize interest for inactive assets, and all ongoing costs of land ownership (i.e. property taxes, homeowner association dues, etc.) are expensed as incurred.
Summary of capitalized interest
A summary of our capitalized interest is as follows (in thousands):
 
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2015
 
2014
 
2015
 
2014
Capitalized interest, beginning of period
$
58,870

 
$
44,355

 
$
54,060

 
$
32,992

Interest incurred
17,857

 
14,695

 
49,665

 
43,333

Interest expensed
(4,187
)
 
(460
)
 
(11,962
)
 
(4,569
)
Interest amortized to cost of home and land closings
(11,144
)
 
(8,135
)
 
(30,367
)
 
(21,301
)
Capitalized interest, end of period (1)
$
61,396

 
$
50,455

 
$
61,396

 
$
50,455

 
(1)
Approximately $468,000 and $490,000 of the capitalized interest is related to our joint venture investments and is a component of Investments in unconsolidated entities in our consolidated balance sheet as of September 30, 2015 and December 31, 2014, respectively.