Quarterly report pursuant to Section 13 or 15(d)

REAL ESTATE AND CAPITALIZED INTEREST

v3.23.2
REAL ESTATE AND CAPITALIZED INTEREST
 6 Months Ended
Jun. 30, 2023
Inventory Disclosure [Abstract]  
REAL ESTATE AND CAPITALIZED INTEREST REAL ESTATE AND CAPITALIZED INTEREST
Real estate consists of the following (in thousands):
As of
June 30, 2023 December 31, 2022
Homes under contract under construction (1)
$ 987,983  $ 822,428 
Unsold homes, completed and under construction (1)
932,984  1,155,543 
Model homes (1)
113,919  97,198 
Finished home sites and home sites under development (2) (3)
2,313,714  2,283,094 
Total $ 4,348,600  $ 4,358,263 

(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, less impairments, if any. 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.
(3)Includes land held for sale of $8.6 million and $66.8 million as of June 30, 2023 and December 31, 2022, respectively.
Subject to sufficient qualifying assets, we capitalize our development period interest costs incurred to applicable qualifying assets in connection with our real estate development and construction activities. Capitalized interest is allocated to active real estate when incurred and charged to Cost of closings when the related property is delivered. A summary of our capitalized interest is as follows (in thousands):
  Three Months Ended June 30, Six Months Ended June 30,
  2023 2022 2023 2022
Capitalized interest, beginning of period $ 62,452  $ 59,082  $ 60,169  $ 56,253 
Interest incurred 15,144  15,171  30,174  30,384 
Interest expensed —  —  —  (41)
Interest amortized to cost of home and land closings (16,518) (12,794) (29,265) (25,137)
Capitalized interest, end of period $ 61,078  $ 61,459  $ 61,078  $ 61,459