Consolidated Balance Sheets (Parenthetical) - $ / shares |
Dec. 31, 2024 |
Dec. 31, 2023 |
|---|---|---|
| Consolidated Balance Sheets [Abstract] | ||
| Preferred stock, par value | $ 0.01 | $ 0.01 |
| Preferred stock shares authorized | 50,000,000 | 50,000,000 |
| Preferred stock shares outstanding | 0 | 0 |
| Common stock, par value | $ 0.01 | $ 0.01 |
| Common stock shares authorized | 100,000,000 | 100,000,000 |
| Common stock shares issued | 30,961,227 | 31,774,615 |
| Common stock shares outstanding | 30,961,227 | 31,774,615 |
Consolidated Statements of Operations - USD ($) $ in Thousands |
12 Months Ended | ||
|---|---|---|---|
Dec. 31, 2024 |
Dec. 31, 2023 |
Dec. 31, 2022 |
|
| Revenues | |||
| Total revenues | $ 4,398,288 | $ 3,692,185 | $ 4,505,916 |
| Selling, general and administrative | (516,489) | (447,311) | (430,742) |
| Inventory impairment | (8,778) | (1,877) | (10,149) |
| Other income (expense) | 2,562 | (2,924) | (17,856) |
| Income before income tax expense | 440,060 | 350,830 | 676,900 |
| Income tax expense | (106,244) | (91,606) | (151,774) |
| Net income | $ 333,816 | $ 259,224 | $ 525,126 |
| Earnings per share: | |||
| Basic | $ 10.59 | $ 8.12 | $ 16.12 |
| Diluted | $ 10.40 | $ 8.05 | $ 15.92 |
| Weighted average common shares outstanding: | |||
| Basic | 31,510,282 | 31,918,942 | 32,578,967 |
| Diluted | 32,110,835 | 32,209,359 | 32,977,935 |
| Homebuilding [Member] | |||
| Revenues | |||
| Total revenues | $ 4,305,391 | $ 3,611,962 | $ 4,410,483 |
| Cost of revenues | (3,369,338) | (2,840,583) | (3,315,994) |
| Home Sales [Member] | |||
| Revenues | |||
| Total revenues | 4,302,638 | 3,604,434 | 4,393,786 |
| Cost of revenues | (3,369,131) | (2,838,436) | (3,305,366) |
| Land Sales And Other [Member] | |||
| Revenues | |||
| Total revenues | 2,753 | 7,528 | 16,697 |
| Cost of revenues | (207) | (2,147) | (10,628) |
| Financial Services [Member] | |||
| Revenues | |||
| Total revenues | 92,897 | 80,223 | 95,433 |
| Cost of revenues | $ (66,185) | $ (48,660) | $ (54,275) |
Insider Trading Arrangements |
3 Months Ended |
|---|---|
Dec. 31, 2024 | |
| Insider Trading Arrangements [Line Items] | |
| Rule 10b5-1 Arrangement Adopted | false |
| Non-Rule 10b5-1 Arrangement Adopted | false |
| Rule 10b5-1 Arrangement Terminated | false |
| Non-Rule 10b5-1 Arrangement Terminated | false |
Cybersecurity Risk Management and Strategy Disclosure |
12 Months Ended |
|---|---|
Dec. 31, 2024 | |
| Cybersecurity Risk Management, Strategy, and Governance [Line Items] | |
| Cybersecurity Risk Management Processes for Assessing, Identifying, and Managing Threats [Text Block] | Background
Cybersecurity, data privacy, and data protection are critical to our business. In the ordinary course of our business, we collect and store certain confidential information such as personal information of homebuyers and borrowers and information about our employees, contractors, vendors, and suppliers. Our Financial Services business relies heavily on the secure processing, storage, and transmission of sensitive and confidential financial, personal, and other information in our computer systems and networks. As such, we have established information security practices leveraging the National Institute of Standards of Technology (NIST) Cybersecurity Framework to measure our security posture, deliver risk management, and provide effective security controls to protect the privacy and confidentiality of our information. Our information security practices include development, implementation, and improvement of policies and procedures to safeguard information and ensure availability of critical data and systems. Our program further includes review and assessment by external, independent third parties, who assess and report on our defense posture and internal incident response preparedness and help identify areas for continued focus and improvement.
Risk Management and Strategy
We have integrated cybersecurity risk management into our broader risk management framework to promote a company-wide culture of cybersecurity risk management. This integration ensures that cybersecurity considerations are an integral part of our decision-making processes at every level.
Our risk management team and information security team works closely with our IT department to continuously evaluate and address cybersecurity risks in alignment with our business objectives and operational needs. We leverage the NIST Cybersecurity Framework to manage our cybersecurity-related risk. The NIST Cybersecurity Framework outlines subcategories of security controls and outcomes over five functions: identify, protect, detect, respond, and recover.
Use of Consultants and Advisors
We engage with a range of external experts, including cybersecurity assessors, consultants, and legal counsel in evaluating and testing our risk management systems. This enables us to leverage specialized knowledge and insights, ensuring our cybersecurity strategies and processes remain current.
Since September 2022, we have engaged a seasoned cyber consultant from a global cybersecurity risk firm to provide CISO-level advisory services to assist our technology teams, business leadership and Board of Directors with guidance and direction as we strengthen our security systems and improve our cyber readiness, as well as to provide insight and intelligence on existing and emerging threat landscapes. The scope of service includes reviewing our current information security policies, past and current security reports, cybersecurity program, and staffing models to assess our ability to prevent and respond to cyberattack incidents and mitigate any impacts they may have.
In addition, we have retained special data security legal counsel at a leading U.S. law firm whose practice focuses on data breach response and security compliance issues. This legal counsel is specialized in investigating and responding to events compromising information and systems security, and works closely with client resources, third-party forensic consulting experts and law enforcement to identify the nature and scope of a compromise. We also have retained special data privacy legal counsel to assist us in our compliance with the data privacy laws in the various jurisdictions in which we operate our business.
In 2024, a Security Posture Assessment was conducted by a leading global cybersecurity firm. To perform its assessment, the consultants met with members of our key staff and requested to review documents including, but not limited to, our policies, procedures, past security assessments and penetration tests, documentation regarding network architecture, and security road maps and plans. When such risk assessments are performed, we work with our CISO-level advisor to review any findings from the risk assessment and to identify potential deficiencies in each category and work to close the identified gaps. With our CISO-level advisor’s assistance, we have implemented several industry leading solutions, policies, and practices to close those findings and matured Century’s defense and resiliency postures. We also have developed an Information Security Incident Response Policy which has been reviewed by our CISO-level advisor. Additionally, we retain a variety of cybersecurity consulting firms, including our CISO-level advisor, to assist us in conducting tabletop exercises to evaluate our incident response plan and response capabilities, most recently in December 2024.
The Company primarily manages risks for cybersecurity threats associated with its third-party service providers through evaluations and assessments during vendor selection, contract negotiations and contract renewals. We have introduced a third-party vendor risk management solution and professional service to survey and monitor the Company’s critical vendors at on-boarding and on a reoccurring basis.
Our information security team conducts annual information security awareness training for all employees. In addition, we have retained a third-party vendor to provide regular online awareness training modules for our employees on important topics such as spoof login, impersonation attack, identity theft, stolen laptop, and passwords. Each module contains a video vignette followed by a quick quiz.
In the past three years, we have not experienced any material computer data security breaches as a result of a compromise of our information systems and we are not aware and have not had a significant cybersecurity breach or attack that had a material impact or are reasonably likely to materially impact our business operations, operating results, or financial condition.
Maintaining a robust information security system is an ongoing priority for us and we plan to continue to identify and evaluate new, emerging risks to data protection and cybersecurity both within our Company and through our engagement of third-party service providers.
If we were to experience a material cybersecurity incident in the future, such incident may have an adverse effect, including on our business operations, operating results, or financial condition. For more information regarding these cybersecurity risks and potential related impacts on us, see “Risk Factors” in Part I, Item 1A of this Annual Report on Form 10-K. |
| Cybersecurity Risk Management Processes Integrated [Flag] | true |
| Cybersecurity Risk Management Processes Integrated [Text Block] | We have integrated cybersecurity risk management into our broader risk management framework to promote a company-wide culture of cybersecurity risk management. This integration ensures that cybersecurity considerations are an integral part of our decision-making processes at every level.
Our risk management team and information security team works closely with our IT department to continuously evaluate and address cybersecurity risks in alignment with our business objectives and operational needs. We leverage the NIST Cybersecurity Framework to manage our cybersecurity-related risk. The NIST Cybersecurity Framework outlines subcategories of security controls and outcomes over five functions: identify, protect, detect, respond, and recover. |
| Cybersecurity Risk Management Third Party Engaged [Flag] | true |
| Cybersecurity Risk Third Party Oversight and Identification Processes [Flag] | true |
| Cybersecurity Risk Materially Affected or Reasonably Likely to Materially Affect Registrant [Flag] | true |
| Cybersecurity Risk Materially Affected or Reasonably Likely to Materially Affect Registrant [Text Block] | In the past three years, we have not experienced any material computer data security breaches as a result of a compromise of our information systems and we are not aware and have not had a significant cybersecurity breach or attack that had a material impact or are reasonably likely to materially impact our business operations, operating results, or financial condition.
Maintaining a robust information security system is an ongoing priority for us and we plan to continue to identify and evaluate new, emerging risks to data protection and cybersecurity both within our Company and through our engagement of third-party service providers.
If we were to experience a material cybersecurity incident in the future, such incident may have an adverse effect, including on our business operations, operating results, or financial condition. For more information regarding these cybersecurity risks and potential related impacts on us, see “Risk Factors” in Part I, Item 1A of this Annual Report on Form 10-K. |
| Cybersecurity Risk Board of Directors Oversight [Text Block] | The Board of Directors is aware of the critical nature of managing risks associated with cybersecurity threats. |
| Cybersecurity Risk Board Committee or Subcommittee Responsible for Oversight [Text Block] | Our Board of Directors has delegated to the Audit Committee the responsibility to oversee our cybersecurity efforts and cyber-related risks. The Audit Committee, comprised fully of independent directors, is responsible for oversight of our (i) information security policies, including periodic assessment of risk of information security breach, training programs, significant threat changes and vulnerabilities and monitoring metrics and (ii) effectiveness of information security policy implementation. |
| Cybersecurity Risk Process for Informing Board Committee or Subcommittee Responsible for Oversight [Text Block] | The CIO and members of management meet with the Audit Committee on a regular basis to review and discuss risk exposure related to our IT systems and data privacy. The purpose of these management updates is to inform the Audit Committee of potential risks related to our IT systems and data privacy, as well as any relevant mitigation or remediation tactics being implemented. The management team and/or Audit Committee, in turn, regularly provide data protection and cybersecurity reports to the full Board of Directors.
The Audit Committee is composed of members with diverse expertise including risk management, technology, and finance. Although none of the members of the Audit Committee have any work experience, degree, or certifications related to information security or cybersecurity, the Audit Committee relies on the CIO and independent feedback from outside advisors, such as our CISO-level advisor, on the current and future cybersecurity program to assist the Audit Committee in its cybersecurity oversight responsibilities. Because the method and sources of cyberattacks change frequently, our outside advisors, including our CISO-level advisor, provide invaluable, ongoing updates to inform and educate our Board of Directors on current trends of cybersecurity threats, emerging trends, and best practices. |
| Cybersecurity Risk Role of Management [Text Block] | Our information security team that is led by our Chief Information Officer (CIO) is responsible for implementing and operating our Cybersecurity Risk Management program.
Our CIO has led our efforts since 2016, overseeing multiple acquisitions while modernizing the IT environment. He has held technology leadership roles in both the public and private sectors, with more than 20 years of experience as an IT leader in the homebuilding industry. In that time, our CIO has managed broad initiatives and teams, including IT operations, cybersecurity, business systems, mergers and acquisitions, communications, and business intelligence. His in-depth knowledge and experience are instrumental in developing and executing our cybersecurity strategies. Our CIO reports to our Corporate General Counsel.
We are a member of the Center for Internet Security (CIS), which assists our management in policy and technical support. Some of the benefits of our CIS membership include direct access to cybersecurity advisories and alerts, vulnerability assessments and incident response for entities experiencing a cyber threat, secure information sharing through the Homeland Security Information Network (HISN) portal, tabletop exercises, and weekly malicious domains/IP reports.
The CIO, in his capacity, regularly informs the Executive Chairman, Chief Executive Officer, Corporate General Counsel, and Chief Financial Officer, of aspects related to cybersecurity risks and incidents. This ensures that the highest levels of management are kept abreast of the cybersecurity posture and potential risks we are facing.
The CIO and the other members of senior management play a key role in informing the Audit Committee on cybersecurity risks. They provide comprehensive briefings to the Audit Committee on a regular basis, with a minimum frequency of twice per year. These briefings encompass a broad range of topics, including emerging threats, status of ongoing cybersecurity initiatives and strategies, incident reports, and updates regarding compliance with regulatory requirements and industry standards.
In addition to our scheduled meetings, the Audit Committee, CIO and other members of senior management maintain an ongoing dialogue regarding emerging or potential cybersecurity risks. Together, they receive updates on any significant developments in the cybersecurity field, ensuring the Board’s oversight is proactive and responsive. Senior management actively participates in strategic decisions related to cybersecurity, offering guidance and approval for major initiatives, and is involved in incident materiality determinations that would trigger cybersecurity incident disclosure obligations. This active involvement ensures that cybersecurity considerations are integrated into our broader strategic objectives. |
| Cybersecurity Risk Management Positions or Committees Responsible [Flag] | true |
| Cybersecurity Risk Management Positions or Committees Responsible [Text Block] | Our information security team that is led by our Chief Information Officer (CIO) is responsible for implementing and operating our Cybersecurity Risk Management program. |
| Cybersecurity Risk Management Expertise of Management Responsible [Text Block] | Our CIO has led our efforts since 2016, overseeing multiple acquisitions while modernizing the IT environment. He has held technology leadership roles in both the public and private sectors, with more than 20 years of experience as an IT leader in the homebuilding industry. In that time, our CIO has managed broad initiatives and teams, including IT operations, cybersecurity, business systems, mergers and acquisitions, communications, and business intelligence. His in-depth knowledge and experience are instrumental in developing and executing our cybersecurity strategies. Our CIO reports to our Corporate General Counsel.
We are a member of the Center for Internet Security (CIS), which assists our management in policy and technical support. Some of the benefits of our CIS membership include direct access to cybersecurity advisories and alerts, vulnerability assessments and incident response for entities experiencing a cyber threat, secure information sharing through the Homeland Security Information Network (HISN) portal, tabletop exercises, and weekly malicious domains/IP reports.
The CIO, in his capacity, regularly informs the Executive Chairman, Chief Executive Officer, Corporate General Counsel, and Chief Financial Officer, of aspects related to cybersecurity risks and incidents. This ensures that the highest levels of management are kept abreast of the cybersecurity posture and potential risks we are facing.
The CIO and the other members of senior management play a key role in informing the Audit Committee on cybersecurity risks. They provide comprehensive briefings to the Audit Committee on a regular basis, with a minimum frequency of twice per year. These briefings encompass a broad range of topics, including emerging threats, status of ongoing cybersecurity initiatives and strategies, incident reports, and updates regarding compliance with regulatory requirements and industry standards.
In addition to our scheduled meetings, the Audit Committee, CIO and other members of senior management maintain an ongoing dialogue regarding emerging or potential cybersecurity risks. Together, they receive updates on any significant developments in the cybersecurity field, ensuring the Board’s oversight is proactive and responsive. Senior management actively participates in strategic decisions related to cybersecurity, offering guidance and approval for major initiatives, and is involved in incident materiality determinations that would trigger cybersecurity incident disclosure obligations. This active involvement ensures that cybersecurity considerations are integrated into our broader strategic objectives. |
| Cybersecurity Risk Process for Informing Management or Committees Responsible [Text Block] | The CIO and members of management meet with the Audit Committee on a regular basis to review and discuss risk exposure related to our IT systems and data privacy. The purpose of these management updates is to inform the Audit Committee of potential risks related to our IT systems and data privacy, as well as any relevant mitigation or remediation tactics being implemented. The management team and/or Audit Committee, in turn, regularly provide data protection and cybersecurity reports to the full Board of Directors. The Audit Committee is composed of members with diverse expertise including risk management, technology, and finance. Although none of the members of the Audit Committee have any work experience, degree, or certifications related to information security or cybersecurity, the Audit Committee relies on the CIO and independent feedback from outside advisors, such as our CISO-level advisor, on the current and future cybersecurity program to assist the Audit Committee in its cybersecurity oversight responsibilities. Because the method and sources of cyberattacks change frequently, our outside advisors, including our CISO-level advisor, provide invaluable, ongoing updates to inform and educate our Board of Directors on current trends of cybersecurity threats, emerging trends, and best practices. |
| Cybersecurity Risk Management Positions or Committees Responsible Report to Board [Flag] | true |
Nature of Operations and Summary of Significant Accounting Policies |
12 Months Ended | |||||||||||||||||||||||||||||||||||
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Dec. 31, 2024 | ||||||||||||||||||||||||||||||||||||
| Nature of Operations and Summary of Significant Accounting Policies [Abstract] | ||||||||||||||||||||||||||||||||||||
| Nature of Operations and Summary of Significant Accounting Policies | 1. Nature of Operations and Summary of Significant Accounting Policies Nature of Operations Century Communities, Inc. (which we refer to as “we,” “CCS,” or the “Company”), together with its subsidiaries, is engaged in the development, design, construction, marketing and sale of single-family attached and detached homes in 17 states. In many of our projects, in addition to building homes, we entitle and develop the underlying land. We build and sell homes under our Century Communities and Century Complete brands. Our Century Communities brand has an emphasis on serving the affordable homebuilding market but offers a wide range of buyer profiles including: entry-level, first and second time move-up, and lifestyle homebuyers, and provides our homebuyers with the ability to personalize their homes through certain option and upgrade selections. Our Century Complete brand targets entry-level homebuyers, primarily sells homes through retail studios and the internet, and generally provides no option or upgrade selections. Our homebuilding operations are organized into the following five reportable segments: West, Mountain, Texas, Southeast, and Century Complete. Our indirect wholly-owned subsidiaries, Inspire Home Loans Inc., Parkway Title, LLC, IHL Home Insurance Agency, LLC, and IHL Escrow Inc., which provide mortgage, title, insurance brokerage, and escrow services, respectively, primarily to our homebuyers have been identified as our Financial Services segment. Additionally, our wholly owned subsidiary, Century Living, LLC, is engaged in the development, construction and management of multi-family rental properties, currently all located in Colorado. Century Living, LLC is included in our Corporate segment. Principles of Consolidation The consolidated financial statements include the accounts of the Company, as well as all subsidiaries in which we have a controlling interest, and variable interest entities for which the Company is deemed to be the primary beneficiary. We do not have any variable interest entities in which we are deemed the primary beneficiary. Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles (which we refer to as “GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Accordingly, actual results could differ from those estimates. Cash and Cash Equivalents The Company considers all liquid investments with original maturities of three months or less to be cash equivalents. Cash Held in Escrow Cash held in escrow consists of amounts related to the proceeds from home closings held for our benefit in escrow, which are typically held for a few days. Accounts Receivable Accounts receivable primarily consists of rebates receivables, receivables under insurance policies, and income tax receivables. We periodically review the collectability of our accounts receivable, and, if it is determined that a receivable might not be fully collectible, an allowance is recorded for the amount deemed uncollectible. Inventories and Cost of Sales We capitalize pre-acquisition, land, land development, and other allocated costs, including interest, during development, periods of entitlement, and home construction. Land, land development, and other common costs are allocated to inventory using the relative-sales-value method; however, as lots within a project typically have comparable market values, we generally allocate land, land development, and common costs equally to each lot within the project. Home construction costs are recorded using the specific-identification method. Cost of sales for homes delivered includes the allocation of construction costs of each home and all applicable land acquisition, land development, and related common costs, both incurred and estimated to be incurred. Changes to estimated total development costs subsequent to initial home closings in a community are generally allocated to the remaining homes in the community. When a home is delivered, the Company generally has not paid all incurred costs necessary to complete the home, and a liability and a charge to cost of home sales revenues are recorded for the amount that is estimated will ultimately be paid related to delivered homes. We review all of our communities for indicators of impairment quarterly and record an impairment loss when conditions exist where the carrying amount of inventory is not recoverable and exceeds its fair value. Indicators of impairment include, but are not limited to, significant decreases in local housing market values and selling prices of comparable homes, significant decreases to gross margins, costs significantly in excess of budget, and operating cash flow losses. When an indicator of impairment is identified, we prepare and analyze cash flows at the lowest level for which there are identifiable cash flows that are independent of the cash flows of other groups of assets, which we have determined as the community level. If the undiscounted cash flows are less than the community’s carrying value, we generally estimate the fair value using the estimated future discounted cash flows of the respective inventories. A community with a fair value less than its carrying value is impaired and is written down to fair value. Such losses, if any, are reported within homebuilding gross margin.
When estimating undiscounted cash flows, we make various assumptions, including the following: the expected home sales revenue to be generated, including consideration of the number of homes available, pricing and incentives offered by us or other builders in comparable communities; the costs incurred to date and expected to be incurred including, but not limited to, land and land development costs, home construction costs, interest costs, indirect construction, and selling and marketing costs; any alternative product offerings that may be offered that could have an impact on sales, sales prices and/or building costs; and alternative uses for the property. During the year ended December 31, 2024, we determined that inventory with a carrying value before impairment of $49.5 million within 9 communities across our Century Complete, Southeast, and Texas segments was not recoverable. Accordingly, we recognized impairment charges of an aggregate $8.8 million in order to record the communities at fair value. During the year ended December 31, 2023, we recorded impairment charges of $1.9 million for 5 communities and during the year ended December 31, 2022, we recorded impairment charges of $10.1 million for 22 communities. The impairment charges are included in inventory impairment in our consolidated statements of operations. Home Sales Revenues and Profit Recognition As defined in the Accounting Standards Codification (which we refer to as “ASC”) 606, Revenue from Contracts with Customers (“ASC 606”), revenues from home sales and the related profit are recorded when our performance obligations are satisfied, which generally occurs when the respective homes are delivered and title has passed to our homebuyers. We generally satisfy our performance obligations in less than one year from the contract date. In order to promote sales of the homes, we may offer sales incentives to homebuyers. The types of incentives vary on a community-by-community basis and home-by-home basis, and primarily include price discounts on individual homes and financing incentives, all of which are reflected as a reduction of home sales revenues. Proceeds from home closings that are held for our benefit in escrow, are presented as cash held in escrow on our consolidated balance sheets. Cash held for our benefit in escrow is typically held by the escrow agent for a few days. When it is determined that the earnings process is not complete and we have remaining performance obligations that are material in the context of the contract, the related revenue and costs are deferred for recognition in future periods until those performance obligations have been satisfied. Prior to satisfying our performance obligations, we typically receive deposits from customers related to sold but undelivered homes and we collect these deposits at the time a homebuyer’s contract is accepted. These deposits are classified as earnest money deposits and are included in accrued expenses and other liabilities on our consolidated balance sheets. Earnest money deposits totaled $8.8 million and $7.9 million at December 31, 2024 and 2023, respectively. Performance Deposits We are occasionally required to make a land, bond, and utility cash deposits as each new development is started. These amounts typically are refundable as homes are delivered, or development obligations are completed. Performance deposits are included in prepaid expenses and other assets on the consolidated balance sheets. Lot Option and Escrow Deposits We enter into lot option and purchase agreements with unrelated parties to acquire lots for the construction of homes. Under these agreements, we have paid deposits, which in many cases are non-refundable, in consideration for the right, but not the obligation, to purchase land or lots at a future point in time with predetermined terms. Lot option and escrow deposits are included in prepaid expenses and other assets on the consolidated balance sheets. We charge to expense non-refundable deposit and capitalized pre-acquisition costs, when it is probable that the lots will not be acquired. During the year ended December 31, 2024, 2023, and 2022 we terminated certain contracts in our markets that no longer met our investment criteria, resulting in a charges of $6.0 million, $3.4 million, and $11.6 million, respectively, which are included in other expense in our consolidated statements of operations. Model Homes and Sales Facilities Costs related to our model homes and sales facilities are treated in one of three ways depending on their nature. Costs directly attributable to the home including upgrades that are permanent and sold with the home are capitalized to inventory and included in cost of home sales revenues when the unit is delivered to the homebuyer. Marketing related costs, such as non-permanent signage, brochures and marketing materials as well as the cost to convert the model into a salable unit are expensed as incurred. Costs to furnish the model home sites, permanent signage, and construction of sales facilities are capitalized to property and equipment and depreciated over the estimated life of the community based on the number of lots in the community which typically range from 1 to 3 years. Property and Equipment Property and equipment are stated at cost less accumulated depreciation. Depreciation is charged to expense on the straight-line basis over the estimated useful life of each asset. The estimated useful lives for each major depreciable classification of property and equipment are as follows:
Financial Services Mortgage loans held for sale and mortgage servicing rights are carried at fair value, with gains and losses from the changes in fair value reflected in financial services revenue on the consolidated statements of operations. Management believes carrying mortgage loans held for sale at fair value improves financial reporting by mitigating volatility in reported earnings caused by measuring the fair value of the loans and the derivative instruments used to economically hedge them. Derivative instruments used to economically hedge our market and interest rate risk are carried at fair value. Derivative instruments typically include interest rate lock commitments and forward commitments on mortgage-backed securities. Changes in fair value of these derivatives, as well as any gains or losses upon settlement, are reflected in financial services revenue on the consolidated statements of operations. Net gains and losses from the sale of mortgage loans held for sale are included in financial services revenue on the consolidated statements of operations, and include (1) net gain on sale of loans, which are recognized based upon the difference between the sales proceeds and carrying value of the related loans upon sale, with sale proceeds reflecting the cash received from investors through the sale of the mortgage loan and servicing release premium; (2) the fair value of originated mortgage servicing rights; (3) the change in fair value of mortgage loans held for sale; (4) the change in fair value of derivatives instruments, including interest rate lock commitments and forward commitments on mortgage-backed securities; (5) provision for or benefit from investor reserves; and (6) fees earned from originating mortgage loans. Fees earned from originating mortgage loans, which are recognized at the time the mortgage loans are funded, include origination fees, credits, and discount points provided directly to our customers to reduce interest rates. Intercompany fees charged directly to the homebuilder related to commitment agreements entered into between our homebuilding and Financial Services segments are eliminated from financial services revenue on the consolidated statements of operations upon consolidation. Financial service costs on the consolidated statement of operations primarily consist of general and administrative costs to support our mortgage, title, insurance brokerage and escrow services. Stock-Based Compensation We account for stock-based awards in accordance with ASC 718, Compensation—Stock Compensation. ASC 718 requires us to estimate the grant date fair value of stock-based compensation awards and to recognize the fair value as compensation costs over the requisite service period, which is generally three years, for all awards that vest. We estimate an annual forfeiture rate at the time of grant based on historical experience, and revise the rate in subsequent periods, if necessary, based on actual forfeiture data. The fair value of our restricted stock units and awards in the form of unrestricted shares of common stock is equal to the closing price of our common stock on the New York Stock Exchange on the date of grant. Stock-based compensation expense associated with outstanding performance share units is measured using the grant date fair value and is based on the estimated achievement of the established performance criteria at the end of each reporting period until the performance period ends, recognized on a straight-line basis over the performance period. Stock-based compensation expense is only recognized for performance share units that we expect to vest, which we estimate based upon an assessment of the probability that the performance criteria will be achieved. The performance share units granted during the fiscal years ended December 31, 2024, 2023, and 2022 have performance-based metrics measured over performance periods ending on December 31 for each three-year period. Income Taxes We account for income taxes in accordance with ASC 740, Income Taxes, which requires recognition of deferred tax assets and liabilities at enacted income tax rates for the temporary differences between the financial reporting bases and the tax bases of its assets and liabilities. Any effects of changes in income tax rates or tax laws are included in the provision for income taxes in the period of enactment. When it is more likely than not that a portion or all of a deferred tax asset will not be realized in the future, the Company records a corresponding valuation allowance against the deferred tax asset. As of December 31, 2024 and 2023, we had no valuation allowance recorded against our deferred tax assets. In addition, when it is more likely than not that a tax position will be sustained upon examination by a tax authority that has full knowledge of all relevant information, the Company measures the amount of tax benefit from the position and records the largest amount of tax benefit that is more likely than not of being realized after settlement with a tax authority. The Company’s policy is to recognize interest to be paid on an underpayment of income taxes in interest expense and any related statutory penalties in the provision for income taxes on the consolidated statements of operations. As of December 31, 2024 and 2023 we had no reserves for uncertain tax positions. Goodwill We evaluate goodwill for possible impairment in accordance with ASC 350, Intangibles–Goodwill and Other, on an annual basis, or more frequently if events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. We use a two step process to assess whether or not goodwill can be realized. The first step is a qualitative assessment that analyzes current economic indicators associated with a particular reporting unit. If the qualitative assessment indicates a stable or improved fair value, no further testing is required.
If a qualitative assessment indicates that a significant decline to fair value of a reporting unit is more likely than not, we will proceed to the second step where we calculate the fair value of a reporting unit based on discounted future cash flows. If this step indicates that the carrying value of a reporting unit is in excess of its fair value, an impairment loss shall be recognized in an amount equal to that excess, limited to the total amount of goodwill allocated to that reporting unit.
As of December 31, 2024 and 2023, we determined our goodwill was not impaired. Business Combinations We account for business combinations in accordance with ASC 805, Business Combinations, if the acquired assets assumed and liabilities incurred constitute a business. We consider acquired companies to constitute a business if the acquired net assets and processes have the ability to create outputs in the form of revenue. For acquired companies constituting a business, we recognize the identifiable assets acquired and liabilities assumed at their acquisition-date fair values and recognize any excess of total consideration paid over the fair value of the identifiable net assets as goodwill. Variable Interest Entities (“VIEs”) We review land option contracts where we have a non-refundable deposit to determine whether the corresponding land seller is a VIE and, if so, whether we are the primary beneficiary. Although we do not have legal title to the underlying land, we are required to consolidate a VIE if we are the primary beneficiary. In determining whether we are the primary beneficiary, we consider, among other things, whether we have the power to direct the activities that most significantly impact the economic performance of the VIE. In making this determination, we consider whether we have the power to direct certain activities, including, but not limited to, determining or limiting the scope or purpose of the VIE, the ability to sell or transfer property owned or controlled by the VIE, or arranging financing for the VIE. As a result of our analysis, we determined that as of December 31, 2024 and 2023, we were not the primary beneficiary of any VIE from which we have acquired rights to land under the land option contract. As of December 31, 2024 and 2023, we had non-refundable cash deposits totaling $54.7 million and $18.3 million, respectively, classified in prepaid expenses and other assets in our consolidated balance sheets for land option contracts. The non-refundable deposit is our maximum exposure to loss for the transactions as of December 31, 2024 and 2023, respectively.
Advertising and Marketing Costs
Advertising and marketing costs are expensed as incurred and totaled $22.8 million, $14.9 million and $9.5 million for the years ended December 31, 2024, 2023 and 2022, respectively. Advertising and marketing costs are included in selling, general and administrative on the consolidated statements of operations.
Reclassifications Certain prior period amounts have been reclassified to conform to current period presentation.
In November 2024, the FASB issued ASU No. 2024-03, “Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses” (“ASU 2024-03”), which requires disclosure of certain costs and expenses on an interim and annual basis in the notes to the financial statements. ASU 2024-03 will become effective for us for the fiscal year ending December 31, 2027. Early adoption is permitted, and guidance should be applied prospectively, with an option to apply guidance retrospectively. We are currently evaluating the impact of the adoption of ASU 2024-03 on our consolidated financial statements and related disclosures.
In December 2023, the FASB issued ASU No. 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures” (“ASU 2023-09”). ASU 2023-09 requires more disaggregated income tax disclosures, including additional information in the rate reconciliation and additional disclosures about income taxes paid. ASU 2023-09 will become effective for us for the fiscal year ending December 31, 2025. Early adoption is permitted, and guidance should be applied prospectively, with an option to apply guidance retrospectively. We are currently evaluating the impact of the adoption of ASU 2023-09 on our consolidated financial statements and related disclosures.
In November 2023, the FASB issued ASU No. 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures” (“ASU 2023-07”). ASU 2023-07 requires disclosure of significant segment expenses that are regularly provided to the chief operating decision maker (“CODM”) and included within each reported measure of segment profit or loss. The guidance also expands disclosure requirements for interim periods, as well as requires disclosure of other segment items, including the title and position of the entity’s CODM. ASU 2023-07 became effective for us for the fiscal year ending December 31, 2024 and we applied the amendments retrospectively to all prior periods presented in our consolidated financial statements. See Note 2 – Reporting Segments in the Notes to the Consolidated Financial Statements. |
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Reporting Segments |
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| Reporting Segments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Reporting Segments | 2. Reporting Segments Our homebuilding operations are engaged in the development, design, construction, marketing and sale of single-family attached and detached homes in 17 states. We build and sell homes under our Century Communities and Century Complete brands. Our Century Communities brand is managed by geographic location, and each of our four geographic regions offers a wide range of buyer profiles including: entry-level, first and second time move-up, and lifestyle homebuyers, and provides our homebuyers with the ability to personalize their homes through certain option and upgrade selections. Each of our four geographic regions is considered a separate operating segment. Our Century Complete brand targets entry-level homebuyers, primarily sells homes through retail studios and the internet, and generally provides no option or upgrade selections. Our Century Complete brand currently has operations in 10 states and is managed separately from our four geographic regions. Accordingly, it is considered a separate operating segment. Accordingly, we have presented our homebuilding operations as the following five reportable segments as of December 31, 2024: West (California and Washington) Mountain (Arizona, Colorado, Nevada and Utah) Texas Southeast (Florida, Georgia, North Carolina, South Carolina and Tennessee) Century Complete (Alabama, Arizona, Florida, Georgia, Indiana, Kentucky, Louisiana, Michigan, North Carolina, South Carolina) We have identified our Financial Services operations, which provide mortgage, title, insurance brokerage, and escrow services to our homebuyers, as a sixth reportable segment. Our Corporate operations are a non-operating segment, as it serves to support our homebuilding operations, and to a lesser extent our Financial Services operations, through various functions, such as our executive, finance, treasury, human resources, accounting and legal departments. Additionally, our wholly owned subsidiary, Century Living, LLC, is engaged in the development, construction and management of multi-family rental properties, currently all located in Colorado. Century Living, LLC is included in our Corporate segment.
Our Executive Chairman and our Chief Executive Officer, collectively, have been determined to be our Chief Operating Decision Makers (“CODMs”) to make key operating decisions and assess performance. The management of our four Century Communities geographic regions, Century Complete, and our Financial Services segment reports to our CODMs. The CODMs evaluate the segment’s operating performance and allocates resources for all of our reportable segments based on income before income tax expense. For all of the segments, the CODMs use segment income before income tax expense in the annual budget and forecasting process. The CODMs consider budget-to-actual forecast variances for income before tax expense on a monthly basis for evaluating performance of each segment and making decisions about allocating capital and other resources to each segment. The measure of segment assets is reported on the consolidated balance sheets as total assets. The accounting policies of the reportable segments are the same as those described in the summary of significant accounting policies.
Commencing in the first quarter of 2023, our Century Complete operations in Texas were realigned and are now managed under our Texas segment. Accordingly, we have restated the corresponding segment information for the year ended December 31, 2022. The following table summarizes total revenue, significant expenses, and income (loss) before income tax expense by segment (in thousands):
(1)Includes cost of land sales and other revenues, and other income (expense)
The following table summarizes total assets by segment (in thousands):
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Business Combinations |
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| Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||
| Business Combinations | 3. Business Combinations
On January 22, 2024, we closed on the acquisition of substantially all the assets and assumed certain liabilities of Landmark Homes of Tennessee, Inc. (“Landmark”), a homebuilder with operations, including six active communities, in Nashville, Tennessee, for approximately $33.4 million in cash, inclusive of customary holdbacks. We concluded that the acquisition represents a business combination. In connection with this acquisition, we allocated $3.4 million in goodwill to the Southeast operating segment, and we expect that $7.6 million of goodwill will be deductible for tax purposes. We incurred $0.1 million in acquisition costs, which are reflected in other expense in our consolidated statements of operations. From the acquisition date, Landmark’s results of operations, which include home sales revenues of $48.4 million and income before income tax expense of $2.0 million, inclusive of purchase price accounting, are included in our accompanying consolidated statements of operations for the year ended December 31, 2024. On July 31, 2024, we closed on the acquisition of substantially all the assets and operations and assumed certain liabilities of Anglia Homes LP (“Anglia”), a homebuilder with operations, including 26 active communities, in the greater Houston, Texas area, for approximately $127.0 million in cash, inclusive of customary holdbacks. We concluded that the acquisition represents a business combination, as we determined that the fair value of the gross assets acquired was not concentrated in a single identifiable asset or group of similar identifiable assets, and the acquired assets and processes have the ability to create outputs in the form of revenue from the sale of single-family residences. We incurred $0.5 million in acquisition costs, which are reflected in other expense in our consolidated statements of operations. The following is a summary of the allocation of the purchase price for Anglia based on the fair value of assets acquired and liabilities assumed (in thousands):
Acquired inventories consist of work in process inventories and finished lots. We estimated the fair value of the acquired inventories based upon the stage of production of each unit and a gross margin that we believe a market participant would require to complete the remaining development and requisite selling efforts. We estimated a market participant would require a gross margin ranging from approximately 8% to 20% based upon the stage of production of the individual lot. Amortizable intangible assets acquired include right of first refusal and non-compete agreements, which we estimated to have fair values of $0.9 million and $1.0 million, respectively. These intangible assets are amortized each over 2 years. Goodwill represents the excess of the purchase price over the fair value of assets acquired and liabilities assumed, and in connection with this acquisition, we have allocated $7.4 million in goodwill to the Texas operating segment. We expect that $27.0 million of goodwill will be deductible for tax purposes. We determined that Anglia’s carrying costs approximated fair value for all other acquired assets and assumed liabilities. From the acquisition date, Anglia’s results of operations, which include home sales revenues of $49.3 million and loss before income tax expense of $1.7 million, inclusive of purchase price accounting, are included in our accompanying consolidated statements of operations for the year ended December 31, 2024. |
Inventories |
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| Inventories [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Inventories | 4. Inventories
Inventories included the following (in thousands):
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Financial Services |
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Dec. 31, 2024 | |
| Financial Services [Abstract] | |
| Financial Services | 5. Financial Services Our Financial Services are principally comprised of our mortgage lending operations, Inspire. Inspire is a full-service mortgage lender and primarily originates mortgage loans for our homebuyers. Inspire sells substantially all of the loans it originates either as loans with servicing rights released, or with servicing rights retained, in the secondary mortgage market within a short period of time after origination, generally within 30 days. Inspire primarily finances these loans using its mortgage repurchase facilities. As of December 31, 2024 and 2023, Inspire had mortgage loans held for sale with an aggregate fair value of $236.9 million and $251.9 million, respectively, and an aggregate outstanding principal balance of $241.6 million and $247.7 million, respectively. The loss from the change in fair value for mortgage loans held for sale was $8.8 million during the year ended December 31, 2024 and are included in financial services revenue on the consolidated statements of operations. The gain from the change in fair value of mortgage loans held for sale was $2.6 million during the year ended December 31, 2023, and the loss from the change in fair value for mortgage loans held for sale was $9.5 million for the year ended December 31, 2022. Net gain on the sale of mortgage loans was $59.7 million, $54.9 million, and $41.2 million for the years ended December 31, 2024, 2023, and 2022 and are included in financial services revenue on the consolidated statements of operations. Mortgage loans in process for which interest rates were locked by borrowers, or interest rate lock commitments, had an aggregate outstanding principal balance of $76.3 million and $49.6 million at December 31, 2024 and 2023, respectively, and carried a weighted average interest rate of approximately 5.5% and 5.8%, respectively. Interest rate risks related to these obligations are typically mitigated through our interest rate hedging program or by the preselling of loans to investors. Refer to Note 14 – Fair Value Disclosures in the Notes to the Consolidated Financial Statements for further information regarding our derivative instruments. |
Property and Equipment |
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| Property and Equipment | 6. Property and Equipment
Property and equipment included the following (in thousands):
During the year ended December 31, 2024, certain multi-family rental properties were completed and became available for leasing; and as such, we reclassified $149.1 million from multi-family rental properties under construction, included in prepaid expenses and other assets on the consolidated balance sheets, to property and equipment, net on the consolidated balance sheets. Further, during the year ended December 31, 2024, one multi-family rental property was sold, resulting in a $23.3 million gain on sale reflected in other income (expense) on our consolidated statements of operations. |
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Prepaid Expenses and Other Assets |
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| Prepaid Expenses and Other Assets | 7. Prepaid Expenses and Other Assets Prepaid expenses and other assets included the following (in thousands):
(1)Restricted cash consists of restricted cash related to land development, earnest money deposits for home sale contracts held by third parties as required by various jurisdictions, and certain compensating balances associated with our mortgage repurchase facilities and other financing obligations. (2)During the year ended December 31, 2024, certain multi-family rental properties were completed and became available for leasing; and as such, we reclassified $149.1 million from multi-family rental properties under construction, included in prepaid expenses and other assets on the consolidated balance sheets, to property and equipment, net on the consolidated balance sheets. |
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Accrued Expenses and Other Liabilities |
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| Accrued Expenses and Other Liabilities | 8. Accrued Expenses and Other Liabilities Accrued expenses and other liabilities included the following (in thousands):
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Warranties |
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| Warranties [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Warranties |
9. Warranties
Estimated future direct warranty costs are accrued and charged to cost of home sales revenues in the period when the related home sales revenues are recognized. Amounts accrued, which are included in accrued expenses and other liabilities on the consolidated balance sheets, are based upon historical experience rates. We subsequently assess the adequacy of our warranty accrual on a quarterly basis through a model that incorporates historical payment trends and adjust the amounts recorded, if necessary. Based on warranty payment trends relative to our estimates at the time of home closing, we reduced our warranty reserve by $3.1 million and $3.4 million during the years ended December 31, 2024 and 2023, respectively, which is included as a reduction to cost of home sales revenues on our consolidated statements of operations.
Changes in our warranty accrual for the years ended December 31, 2024 and 2023 are detailed in the table below (in thousands):
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Self-Insurance Reserve |
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| Self-Insurance Reserve [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Self-Insurance Reserve | 10. Self-Insurance Reserve We maintain general liability insurance coverage, including coverage for certain construction defects after homes have been delivered and premise operations during construction. These insurance policies are designed to protect us against a portion of the risk of loss from claims, subject to certain self-insured per occurrence and aggregate retentions, deductibles, and available policy limits. In circumstances where we have elected to retain a higher portion of the overall risk for construction defect claims in return for a lower initial premium, we reserve for the estimated self-insured retention costs that we will incur that are above our coverage limits or that are not covered by our insurance policies. The reserve is recorded on an undiscounted basis at the time revenue is recognized for each home closing. Amounts accrued, which are included in accrued expenses and other liabilities on the consolidated balance sheets, are based on third party actuarial analyses that are primarily based upon industry data and partially on our historical claims, which include estimates of claims incurred but not yet reported. Adjustments to estimated reserves are recorded in the period in which the change in estimate occurs. Our self-insurance liability is presented on a gross basis without consideration of insurance recoveries and amounts we have paid on behalf of and expect to recover from other parties, if any. Estimates of insurance recoveries and amounts we have paid on behalf of and expect to recover from other parties, if any, are recorded as receivables when such recoveries are considered probable. Based on our third-party actuarial analyses, we reduced our self-insurance reserve by $0.8 million and $3.4 million, respectively, during the years ended December 31, 2024 and 2023. These adjustments are included in cost of home sales revenues on our consolidated statements of operations.
Changes in our self-insurance reserve for incurred but not reported construction defect claims for the years ended December 31, 2024, and 2023 are detailed in the table below (in thousands):
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Debt |
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| Debt | 11. Debt Our outstanding debt obligations included the following as of December 31, 2024 and 2023 (in thousands):
(1) The carrying value of senior notes reflects the impact of premiums, discounts, and issuance costs that are amortized to interest cost over the respective terms of the senior notes. (2) As of December 31, 2024, other financing obligations included $11.0 million related to insurance premium notes and certain secured borrowings, as well as $102.4 million outstanding under construction loan agreements. As of December 31, 2023, other financing obligations included $24.7 million related to insurance premium notes and certain secured borrowings, as well as $44.9 million outstanding under construction loan agreements. 3.875% Senior Notes Due 2029 In August 2021, we completed a private offering of $500.0 million aggregate principal amount of our 3.875% Senior Notes due 2029 (which we refer to as the “2029 Notes”) in reliance on Rule 144A and Regulation S under the Securities Act of 1933, as amended (which we refer to as the “Securities Act”). The 2029 Notes were issued under an Indenture, dated as of August 23, 2021, among the Company, our subsidiary guarantors party thereto, and U.S. Bank National Association, as trustee (which we refer to as the “August 2021 Indenture,” as it may be supplemented or amended from time to time). The 2029 Notes were issued at 100% of their principal amount and we received proceeds of $493.8 million, net of $6.2 million in issuance costs. The August 2021 Indenture contains certain restrictive covenants on issuing future secured debt and other transactions. The aggregate principal balance of the 2029 Notes is due August 2029, with interest only payments due semi-annually in February and August of each year, beginning on February 15, 2022. As of December 31, 2024, the aggregate obligation, inclusive of unamortized financing costs on the 2029 Notes, was $496.4 million. 6.750% Senior Notes Due 2027 In May 2019, we completed a private offering of $500.0 million aggregate principal amount of the Company’s Initial 6.750% Senior Notes due 2027 (which we refer to as the “Initial Notes due 2027”) in reliance on Rule 144A and Regulation S under the Securities Act of 1933. The Initial Notes due 2027 were issued under the Indenture, dated as of May 23, 2019, among the Company, our subsidiary guarantors party thereto, and U.S. Bank National Association, as trustee (which we refer to as the “May 2019 Indenture,” as it may be supplemented or amended from time to time). The Initial Notes due 2027 were issued at 100% of their principal amount and we received net proceeds of $493.9 million. In connection with this issuance, we deferred $6.1 million of issuance costs, which is presented in the notes payable line item of the consolidated balance sheet. In February 2020, we completed an offer to exchange approximately $500.0 million in aggregate principal amount of our Initial Notes due 2027, which are registered under the Securities Act (which we refer to as the “Exchange Notes due 2027”), for an equivalent amount of the Initial Notes due 2027 that were tendered and accepted for exchange. The terms of the Exchange Notes due 2027 are identical in all material respects to the Initial Notes due 2027, except that the Exchange Notes due 2027 are registered under the Securities Act and the transfer restrictions, registration rights, and additional interest provisions that are applicable to the Initial Notes due 2027 do not apply to the Exchange Notes due 2027. The Initial Notes due 2027 and Exchange Notes due 2027 (which we refer to collectively, as the “Existing Notes due 2027”) will be treated as a single series of notes under the May 2019 Indenture, and will vote as a single class of notes for all matters submitted to a vote of holders under the May 2019 Indenture. The Existing Notes due 2027 are unsecured senior obligations which are guaranteed on an unsecured senior basis by certain of our current and future subsidiaries. The May 2019 Indenture governing the Existing Notes due 2027 contains certain restrictive covenants on issuing future secured debt and other transactions. The aggregate principal balance of the Existing Notes due 2027 is due June 2027, with interest only payments due semi-annually in June and December of each year, which began on December 1, 2019.
As of December 31, 2024, the aggregate obligation, inclusive of unamortized financing costs on the Existing Notes due 2027, was $498.0 million. Other Financing Obligations As of December 31, 2024, other financing obligations included amounts related to insurance premium notes and certain secured borrowings, as well as outstanding borrowings under construction loan agreements.
Insurance premium notes and certain secured borrowings As of December 31, 2024, $11.0 million of outstanding insurance premium notes, compared to $14.4 million of outstanding land development notes and $10.3 million outstanding insurance premium notes as of December 31, 2023.
Construction Loan Agreements
Certain wholly owned subsidiaries of Century Living, LLC are parties to construction loan agreements with various banks, (which we collectively refer to as “the lenders”). These construction loan agreements collectively provide that we may borrow up to an aggregate of $139.6 million from the lenders for purposes of construction of multi-family projects in Colorado, with advances made by the lenders upon the satisfaction of certain conditions. Borrowings under the construction loan agreements bear interest at various rates, including a fixed rate, and floating interest rates per annum equal to the Secured Overnight Financing Rate (which we refer to as “SOFR”) plus an applicable margin. The outstanding principal balances and all accrued and unpaid interest is due on varying maturity dates from March 17, 2026 through March 17, 2028, with certain of the construction loan agreements allowing for the option to extend the maturity dates for a period of 12 months if certain conditions are satisfied. The construction loan agreements contain customary affirmative and negative covenants (including covenants related to construction completion, and limitations on the use of loan proceeds, transfers of land, equipment, and improvements), as well as customary events of default. Interest on our construction loan agreements is capitalized to the multi-family properties assets included in prepaid expenses and other assets on the consolidated balance sheets while the related multi-family rental properties are being actively developed.
As of December 31, 2024 and 2023, $102.4 million and $44.9 million were outstanding under the construction loan agreements, respectively, with borrowings that bore a weighted average interest rate of 6.5% and 7.4% as of December 31, 2024 and 2023, respectively, and we were in compliance with all covenants thereunder. Revolving Line of Credit On November 1, 2024, we entered into a credit agreement (the “Credit Agreement”) with U.S. Bank National Association, as Administrative Agent, and the lenders party thereto. The Credit Agreement, which replaced our prior Second Amended and Restated Credit Agreement, provides us with a senior unsecured revolving credit facility (which we refer to as the “revolving line of credit”) of up to $900 million. The revolving line of credit includes a $250 million sublimit for letters of credit. Subject to the terms and conditions of the Credit Agreement, we are entitled to request an increase in the size of the revolving line of credit by an amount not exceeding $400 million. The obligations under the Credit Agreement are guaranteed by certain of our subsidiaries. Funds are available under the revolving line of credit for the construction of homes, for the acquisition and development of land, land under development and lots for the eventual construction of homes thereon, and for working capital in the ordinary course of business. Unless terminated earlier, the revolving line of credit will mature on November 1, 2028, and the principal amount thereunder, together with all accrued unpaid interest and other amounts owing thereunder, if any, will be payable in full on such date. Subject to the terms and conditions of the Credit Agreement, we may request once per year a extension of the maturity date and up to three times during the term of the revolving line of credit, subject to the approval of the lenders and the Administrative Agent. The Credit Agreement contains customary affirmative and negative covenants (including limitations on our ability to grant liens, incur additional debt, pay dividends, redeem our common stock, make certain investments, issue certain equity securities, engage in transactions with affiliates and engage in certain merger, consolidation or asset sale transactions), as well as customary events of default. Borrowings under the Credit Agreement bear interest at a floating rate equal to Term SOFR or Daily Simple SOFR (in each case as defined in the Credit Agreement), plus an applicable margin between 1.45% and 2.30% per annum, or if selected by us, a base rate plus an applicable margin between 0.45% and 1.30% per annum. The “applicable margins” described above are determined by a schedule based on our leverage ratio, as defined in the Credit Agreement. The Credit Agreement also provides for customary fees including commitment fees payable to each lender ranging from 0.20% to 0.35% per annum based on our leverage ratio of the unused portion of the revolving line of credit and other customary fees.
As of December 31, 2024, $135.5 million was outstanding under the revolving line of credit, with borrowings that bore an interest rate of 5.9%, and were in compliance with all covenants under the Credit Agreement. As of December 31, 2023, no amounts were outstanding under prior revolving line of credit.
Mortgage Repurchase Facilities – Financial Services
Inspire is party to mortgage warehouse facilities with J.P. Morgan Chase Bank, N.A., U.S. Bank National Association and Truist Bank, which provide Inspire with uncommitted repurchase facilities of up to an aggregate of $425.0 million as of December 31, 2024, secured by the mortgage loans financed thereunder. The repurchase facilities have varying short term maturity dates through November 14, 2025. Borrowings under the mortgage repurchase facilities bear interest at variable interest rates per annum equal to SOFR plus an applicable margin, and bore a weighted average interest rate of 6.1% as of December 31, 2024. Amounts outstanding under the repurchase facilities are not guaranteed by us or any of our subsidiaries and the agreements contain various affirmative and negative covenants applicable to Inspire that are customary for arrangements of this type. As of December 31, 2024 and 2023, we had $232.8 million and $239.3 million outstanding under the repurchase facilities, respectively, and were in compliance with all covenants thereunder. Debt Maturities
Aggregate annual maturities of debt as of December 31, 2024 are as follows (in thousands):
During the years ended December 31, 2024, 2023, and 2022, we paid approximately $78.9 million, $58.1 million, and $61.1 million, respectively, in interest expense payments. |
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Interest on Senior Notes and Revolving Line of Credit |
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| Interest on Senior Notes and Revolving Line of Credit | 12. Interest on Senior Notes and Revolving Line of Credit Interest on our senior notes and revolving line of credit, if applicable, is capitalized to inventories while the related communities are being actively developed and until homes are completed. As our qualifying assets exceeded our outstanding debt during the years ended December 31, 2024, 2023, and 2022, we capitalized all interest costs incurred on these facilities during these periods. Our interest costs are as follows (in thousands):
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Income Taxes |
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| Income Taxes [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Income Taxes | 13. Income Taxes Our income tax expense for the years ended December 31, 2024, 2023 and 2022 comprises the following current and deferred amounts (in thousands):
Total income tax expense differed from the amounts computed by applying the federal statutory income tax rate of 21% for the years ended December 31, 2024, 2023, and 2022, to income before income taxes as a result of the following items (in thousands):
Income tax expense for the years ended December 31, 2024, 2023, and 2022 was impacted by benefits of $6.6 million, $2.6 million, and $18.3 million, respectively, associated with the Energy Efficient Home Credit under Internal Revenue Code Section 45L (which we refer to as “Federal Energy Credits”). During prior year period, the Federal Energy Credits provided eligible contractors a federal income tax credit of $2,000 for each home delivered that met the energy saving and certification requirements under the statute for homes delivered through December 31, 2022. The Inflation Reduction Act of 2022 modified the Federal Energy Credits beginning January 1, 2023 requiring a more rigorous certification process and provides a $2,500 or $5,000 tiered credit for new single-family homes meeting designated “Energy Star” or “Zero Energy” program requirements, respectively. Deferred income tax assets and liabilities are recognized for the future tax consequences of temporary differences. Temporary differences arise when revenues and expenses for financial reporting are recognized for tax purposes in a different period. ASC 740 requires that a valuation allowance be recorded against deferred tax assets unless it is more likely than not that the deferred tax assets will be utilized. As a result of this analysis, the Company has not recorded a valuation allowance against its deferred tax assets. The Company will continue to evaluate the need to record valuation allowances against deferred tax assets and will make adjustments in accordance with the accounting standard.
The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities at December 31, 2024 and 2023 (in thousands):
The uncertainty provisions of ASC 740 also require the Company to recognize the impact of a tax position in its consolidated financial statements only if the technical merits of that position indicate that the position is more likely than not of being sustained upon audit. During the years ended December 31, 2024 and 2023, the Company did not record a reserve for uncertain tax positions. We file income tax returns in the U.S. federal jurisdiction and various state jurisdictions. We are subject to U.S. federal income tax examinations and various state income tax examinations for calendar tax years for which the applicable statute of limitations remains open, ranging from calendar tax years ending 2019 through 2024. As of December 31, 2024, we are not currently under an income tax audit by any federal, state, or local authorities. |
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Fair Value Disclosures |
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| Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Fair Value Disclosures | 14. Fair Value Disclosures Fair value measurements are used for the Company’s mortgage loans held for sale, mortgage loans held for investment, mortgage servicing rights, interest rate lock commitments and other derivative instruments on a recurring basis. We also utilize fair value measurements on a non-recurring basis for inventories, and intangible assets when events and circumstances indicate that the carrying value is not recoverable. The fair value hierarchy and its application to the Company’s assets and liabilities is as follows: Level 1 – Quoted prices for identical instruments in active markets. Level 2 – Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are inactive; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets at the measurement date. Mortgage loans held for sale – Fair value is based on quoted market prices for committed and uncommitted mortgage loans. Derivative assets and liabilities – Derivative assets are associated with interest rate lock commitments and investor commitments on loans and may also be associated with forward mortgage-backed securities contracts. Derivative liabilities are associated with forward mortgage-backed securities contracts. Fair value is based on market prices for similar instruments. Level 3 – Valuations derived from techniques where one or more significant inputs or significant value drivers are unobservable in active markets at the measurement date. Mortgage servicing rights – The fair value of the mortgage servicing rights is calculated using third-party valuations. The key assumptions, which are generally unobservable inputs, used in the valuation of the mortgage servicing rights include mortgage prepayment rates, discount rates and cost to service.
Mortgage loans held for investment at fair value – A portion of our mortgage loans held for investment, which were those determined to be unsaleable and transferred from mortgage loans held for sale, are recorded at fair value and are calculated based on Level 3 analysis which incorporates information including the value of underlying collateral, from markets where there is little observable trading activity. The following outlines the Company’s assets and liabilities measured at fair value on a recurring basis at December 31, 2024 and 2023, respectively (in thousands):
(1)A portion of our mortgage loans held for investment, which were those determined to be unsaleable and transferred from mortgage loans held for sale, are recorded at fair value. The unobservable inputs used in the valuation of the mortgage loans held for investment at fair value include the value of underlying collateral, from markets where there is little observable trading activity. (2)The unobservable inputs used in the valuation of the mortgage servicing rights include mortgage prepayment rates, discount rates and cost to service, which were a weighted average of 8.5%, 10.6%, and $74 per year per loan, respectively, as of December 31, 2024 and 8.6%, 10.3%, and $72 per year per loan, respectively, as of December 31, 2023. The high and low end of the range of unobservable inputs used in the valuation did not result in a significant change to the fair value measurement.
The following table represents the reconciliation of the beginning and ending balance for the Level 3 recurring fair value measurements, with gains and losses from the changes in fair value reflected in financial services revenue on the consolidated statements of operations (in thousands):
For the financial assets and liabilities that the Company does not reflect at fair value, the following present both their respective carrying value and fair value at December 31, 2024 and 2023:
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Post-Retirement Plan |
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| Post-Retirement Plan [Abstract] | |
| Post-Retirement Plan | 15. Post-Retirement Plan The Company has 401(k) plans available to substantially all employees. The Company generally makes matching contributions of 50% of employees’ salary deferral amounts on the first 6% of employees’ compensation. Contributions to the plans during the years ended December 31, 2024, 2023 and 2022 were $4.4 million, $3.0 million and $3.3 million, respectively.
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Stock-Based Compensation |
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| Stock-Based Compensation | 16. Stock-Based Compensation During the years ended December 31, 2024, 2023 and 2022, we granted performance share units (which we refer to as “PSUs”) covering up to 0.3 million, 0.5 million, and 0.5 million shares of common stock, respectively in each year, assuming maximum level of performance, with grant date fair values of $82.23, $60.05, and $55.93 per share, respectively, that are subject to both service and performance vesting conditions. The quantity of shares that will ultimately vest and be issued upon settlement of the PSUs ranges from 0% to up to 250% of a targeted number of shares dependent upon the participant and will be determined based on an achievement of a cumulative adjusted pre-tax income performance goal. During the years ended December 31, 2024, 2023, and 2022 we issued 0.2 million, 0.3 million, and 0.3 million shares of common stock, respectively, upon the vesting and settlement of PSUs that were granted in previous periods. Approximately 1.1 million shares will vest from 2025 to 2027 if the defined maximum performance targets are met, and no shares will vest if the defined minimum performance targets are not met. During the years ended December 31, 2024, 2023 and 2022, we granted restricted stock units (which we refer to as “RSUs”) covering 0.2 million, 0.2 million and 0.2 million shares of common stock, respectively, with grant date fair values of $86.20, $62.76 and $62.90 per share, respectively, that vest over a period. During the years ended December 31, 2024, 2023, and 2022, we granted 11.0 thousand, 12.0 thousand and 11.0 thousand shares of common stock, respectively, on an unrestricted basis (which we refer to as “stock awards”) with grant date fair values of $82.84, $65.30 and $54.46, respectively, to our non-employee directors. During the years ended December 31, 2024, 2023 and 2022, the Company recognized stock-based compensation expense of $27.9 million, $36.8 million and $20.0 million, respectively, which is included in selling, general and administrative on the consolidated statements of operations. Stock-based compensation expense for PSUs is initially estimated based on target performance achievement and adjusted as appropriate throughout the performance period. Accordingly, future compensation cost associated with outstanding PSUs may increase or decrease based on the probability and extent of achievement with respect to the applicable performance measures. During the year ended December 31, 2024, in accordance with ASC 718, Compensation—Stock Compensation, we updated our recognition of stock-based compensation expense associated with previously granted PSU awards to reflect probable financial results as they relate to the performance goals of the awards. Accordingly, our estimate of the number of shares which will ultimately vest and be issued upon settlement of our PSU awards increased by a total of 0.1 million shares during the year ended December 31, 2024. We recorded a cumulative catch-up adjustment to increase stock-based compensation expense of $2.6 million ($2.0 million net of tax), or $0.06 per share (basic and diluted), during the year ended December 31, 2024. During the year ended December 31, 2023, in accordance with ASC 718, Compensation—Stock Compensation, we updated our recognition of stock-based compensation expense associated with previously granted PSU awards to reflect probable financial results as they relate to the performance goals of the awards. Accordingly, our estimate of the number of shares which will ultimately vest and be issued upon settlement of our PSU awards increased by a total of 0.5 million shares during the year ended December 31, 2023, of which 0.3 million shares were attributed to PSUs granted in prior year periods. We recorded a cumulative catch-up adjustment to increase stock-based compensation expense of $14.5 million ($10.7 million net of tax), or $0.33 per share (basic and diluted), during the year ended December 31, 2023. The following table summarizes the activity of our PSUs, assuming current estimated level of performance achievement, RSUs, and stock awards for the years ended December 31, 2024, 2023 and 2022 (shares in thousands):
A summary of our outstanding PSUs, assuming current estimated level of performance achievement, and RSUs are as follows (in thousands, except years):
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Stockholders' Equity |
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| Stockholders' Equity [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Stockholders' Equity | 17. Stockholders’ Equity
The Company’s authorized capital stock consists of 100.0 million shares of common stock, par value $0.01 per share, and 50.0 million shares of preferred stock, par value $0.01 per share. As of December 31, 2024 and 2023, there were 31.0 million and 31.8 million shares of common stock issued and outstanding, respectively, and no shares of preferred stock outstanding. On May 4, 2022, the stockholders approved the adoption of the Century Communities, Inc. 2022 Omnibus Incentive Plan (which we refer to as the “2022 Incentive Plan”), which replaced the Century Communities, Inc. Amended and Restated 2017 Omnibus Incentive Plan (which we refer to as our “2017 Incentive Plan”). Under the 2022 Incentive Plan, 3.1 million shares of common stock are available for issuance to eligible participants, plus 51.2 thousand shares of our common stock that remained available for issuance under the 2017 Incentive Plan and any shares subject to awards outstanding under the 2017 Incentive Plan that are subsequently forfeited, cancelled, expire or otherwise terminate without the issuance of such shares. During the years ended December 31, 2024 and 2023, we issued 0.3 million and 0.5 million shares of common stock, respectively, related to the vesting and settlement of RSUs, PSUs, and stock awards. As of December 31, 2024, approximately 2.2 million shares of common stock remained available for issuance under the 2022 Incentive Plan. Our stock repurchase programs, authorized by our Board of Directors, authorize us to repurchase up to 9.0 million shares of our outstanding common stock, of which 4.7 million shares remained available to be repurchased as of December 31, 2024. During the year ended December 31, 2024, an aggregate of 1.0 million shares were repurchased for a total purchase price of approximately $83.8 million and a weighted average price of $81.55 per share, excluding the excise tax accrued on our net share repurchases as a result of the Inflation Reduction Act of 2022. During the year ended December 31, 2023, an aggregate of 278.2 thousand shares were repurchased for a total purchase price of approximately $19.2 million at a weighted average price of $69.09 per share. During the years ended December 31, 2024 and 2023, shares of common stock at a total cost of $10.5 million and $10.7 million, respectively, were netted and surrendered as payment for minimum statutory withholding obligations in connection with the vesting of outstanding stock-based compensation awards. Shares surrendered by the participants in accordance with the applicable award agreements and plan are deemed repurchased and retired by us but are not part of our publicly announced share repurchase programs. The following table sets forth cash dividends declared by our Board of Directors to holders of record of our common stock during the years ended December 31, 2024 and 2023, respectively (in thousands, except per share information):
Under the 2022 Incentive Plan and the previous 2017 Incentive Plan, at the discretion of the Compensation Committee of the Board of Directors, RSUs and PSUs granted under the plan have the right to earn dividend equivalents, which entitles the holders of such RSUs and PSUs to additional RSUs and PSUs equal to the same dividend value per share as holders of common stock. Dividend equivalents are subject to the same vesting and other terms and conditions as the underlying RSUs and PSUs. |
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Earnings Per Share |
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| Earnings Per Share | 18. Earnings Per Share We use the treasury stock method to calculate earnings per share (which we refer to as “EPS”) as our currently issued non-vested RSUs and PSUs do not have participating rights. The following table sets forth the computation of basic and diluted earnings per share for the years ended December 31, 2024, 2023 and 2022 (in thousands, except share and per share information):
Stock-based awards are excluded from the calculation of diluted EPS in the event they are subject to unsatisfied performance conditions or are antidilutive. We excluded 0.4 million, 0.8 million, and 0.5 million common stock unit equivalents from diluted earnings per share during the years ended December 31, 2024, 2023 and 2022, respectively, related to the PSUs for which performance conditions remained unsatisfied. |
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Commitments and Contingencies |
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| Commitments and Contingencies | 19. Commitments and Contingencies Letters of Credit and Performance Bonds In the normal course of business, the Company posts letters of credit and performance and other bonds primarily related to our land development performance obligations, with local municipalities. As of December 31, 2024 and 2023, we had $563.5 million and $510.5 million, respectively, in letters of credit and performance and other bonds issued and outstanding. Leases The Company leases office space and equipment under non-cancelable operating leases, which have lease terms that generally range from 1 to 10 years and often include one or more options to renew. Operating lease expense was $7.3 million, $8.0 million, and $7.9 million for the years ended December 31, 2024, 2023, and 2022, respectively, which are presented on the consolidated statements of operations within selling, general, and administrative expense. Maturities of lease liabilities as of December 31, 2024 were as follows (in thousands):
Legal Proceedings The Company and our subsidiaries and affiliates are subject to claims, lawsuits and other legal actions from time to time that arise primarily in the ordinary course of business, which consist mostly of construction claims, but also could include warranty, workers’ compensation, tort, breach of contract, employment, personal injury, and other similar claims. It is the opinion of management that if the construction or warranty claims have merit, parties other than the Company would be, at least in part, liable for the claims, and eventual outcome of these claims will not have a material adverse effect upon our consolidated financial condition, results of operations, or cash flows. When we believe that a loss is probable and estimable, we record the estimated amount to other accrued liabilities included in accrued expenses and other liabilities on the consolidated balance sheet. Under various insurance policies, we have the ability to recoup costs in excess of applicable self-insured retentions. Estimates of such amounts are recorded in accounts receivable on our consolidated balance sheet when recovery is probable. We do not believe that the ultimate resolution of any claims, lawsuits and other legal actions will have a material adverse effect upon our consolidated financial position, results of operations, or cash flows. |
Nature of Operations and Summary of Significant Accounting Policies (Policy) |
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| Nature of Operations and Summary of Significant Accounting Policies [Abstract] | ||||||||||||||||||||||||||||||||||||
| Nature of Operations | Nature of Operations Century Communities, Inc. (which we refer to as “we,” “CCS,” or the “Company”), together with its subsidiaries, is engaged in the development, design, construction, marketing and sale of single-family attached and detached homes in 17 states. In many of our projects, in addition to building homes, we entitle and develop the underlying land. We build and sell homes under our Century Communities and Century Complete brands. Our Century Communities brand has an emphasis on serving the affordable homebuilding market but offers a wide range of buyer profiles including: entry-level, first and second time move-up, and lifestyle homebuyers, and provides our homebuyers with the ability to personalize their homes through certain option and upgrade selections. Our Century Complete brand targets entry-level homebuyers, primarily sells homes through retail studios and the internet, and generally provides no option or upgrade selections. Our homebuilding operations are organized into the following five reportable segments: West, Mountain, Texas, Southeast, and Century Complete. Our indirect wholly-owned subsidiaries, Inspire Home Loans Inc., Parkway Title, LLC, IHL Home Insurance Agency, LLC, and IHL Escrow Inc., which provide mortgage, title, insurance brokerage, and escrow services, respectively, primarily to our homebuyers have been identified as our Financial Services segment. Additionally, our wholly owned subsidiary, Century Living, LLC, is engaged in the development, construction and management of multi-family rental properties, currently all located in Colorado. Century Living, LLC is included in our Corporate segment. |
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| Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of the Company, as well as all subsidiaries in which we have a controlling interest, and variable interest entities for which the Company is deemed to be the primary beneficiary. We do not have any variable interest entities in which we are deemed the primary beneficiary. |
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| Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles (which we refer to as “GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Accordingly, actual results could differ from those estimates. |
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| Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all liquid investments with original maturities of three months or less to be cash equivalents. |
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| Cash Held in Escrow | Cash Held in Escrow Cash held in escrow consists of amounts related to the proceeds from home closings held for our benefit in escrow, which are typically held for a few days. |
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| Accounts Receivable | Accounts Receivable Accounts receivable primarily consists of rebates receivables, receivables under insurance policies, and income tax receivables. We periodically review the collectability of our accounts receivable, and, if it is determined that a receivable might not be fully collectible, an allowance is recorded for the amount deemed uncollectible. |
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| Inventories and Cost of Sales | Inventories and Cost of Sales We capitalize pre-acquisition, land, land development, and other allocated costs, including interest, during development, periods of entitlement, and home construction. Land, land development, and other common costs are allocated to inventory using the relative-sales-value method; however, as lots within a project typically have comparable market values, we generally allocate land, land development, and common costs equally to each lot within the project. Home construction costs are recorded using the specific-identification method. Cost of sales for homes delivered includes the allocation of construction costs of each home and all applicable land acquisition, land development, and related common costs, both incurred and estimated to be incurred. Changes to estimated total development costs subsequent to initial home closings in a community are generally allocated to the remaining homes in the community. When a home is delivered, the Company generally has not paid all incurred costs necessary to complete the home, and a liability and a charge to cost of home sales revenues are recorded for the amount that is estimated will ultimately be paid related to delivered homes. We review all of our communities for indicators of impairment quarterly and record an impairment loss when conditions exist where the carrying amount of inventory is not recoverable and exceeds its fair value. Indicators of impairment include, but are not limited to, significant decreases in local housing market values and selling prices of comparable homes, significant decreases to gross margins, costs significantly in excess of budget, and operating cash flow losses. When an indicator of impairment is identified, we prepare and analyze cash flows at the lowest level for which there are identifiable cash flows that are independent of the cash flows of other groups of assets, which we have determined as the community level. If the undiscounted cash flows are less than the community’s carrying value, we generally estimate the fair value using the estimated future discounted cash flows of the respective inventories. A community with a fair value less than its carrying value is impaired and is written down to fair value. Such losses, if any, are reported within homebuilding gross margin.
When estimating undiscounted cash flows, we make various assumptions, including the following: the expected home sales revenue to be generated, including consideration of the number of homes available, pricing and incentives offered by us or other builders in comparable communities; the costs incurred to date and expected to be incurred including, but not limited to, land and land development costs, home construction costs, interest costs, indirect construction, and selling and marketing costs; any alternative product offerings that may be offered that could have an impact on sales, sales prices and/or building costs; and alternative uses for the property. During the year ended December 31, 2024, we determined that inventory with a carrying value before impairment of $49.5 million within 9 communities across our Century Complete, Southeast, and Texas segments was not recoverable. Accordingly, we recognized impairment charges of an aggregate $8.8 million in order to record the communities at fair value. During the year ended December 31, 2023, we recorded impairment charges of $1.9 million for 5 communities and during the year ended December 31, 2022, we recorded impairment charges of $10.1 million for 22 communities. The impairment charges are included in inventory impairment in our consolidated statements of operations. |
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| Home Sales Revenues and Profit Recognition | Home Sales Revenues and Profit Recognition As defined in the Accounting Standards Codification (which we refer to as “ASC”) 606, Revenue from Contracts with Customers (“ASC 606”), revenues from home sales and the related profit are recorded when our performance obligations are satisfied, which generally occurs when the respective homes are delivered and title has passed to our homebuyers. We generally satisfy our performance obligations in less than one year from the contract date. In order to promote sales of the homes, we may offer sales incentives to homebuyers. The types of incentives vary on a community-by-community basis and home-by-home basis, and primarily include price discounts on individual homes and financing incentives, all of which are reflected as a reduction of home sales revenues. Proceeds from home closings that are held for our benefit in escrow, are presented as cash held in escrow on our consolidated balance sheets. Cash held for our benefit in escrow is typically held by the escrow agent for a few days. When it is determined that the earnings process is not complete and we have remaining performance obligations that are material in the context of the contract, the related revenue and costs are deferred for recognition in future periods until those performance obligations have been satisfied. Prior to satisfying our performance obligations, we typically receive deposits from customers related to sold but undelivered homes and we collect these deposits at the time a homebuyer’s contract is accepted. These deposits are classified as earnest money deposits and are included in accrued expenses and other liabilities on our consolidated balance sheets. Earnest money deposits totaled $8.8 million and $7.9 million at December 31, 2024 and 2023, respectively. |
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| Performance Deposits | Performance Deposits We are occasionally required to make a land, bond, and utility cash deposits as each new development is started. These amounts typically are refundable as homes are delivered, or development obligations are completed. Performance deposits are included in prepaid expenses and other assets on the consolidated balance sheets. |
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| Lot Option and Escrow Deposits | Lot Option and Escrow Deposits We enter into lot option and purchase agreements with unrelated parties to acquire lots for the construction of homes. Under these agreements, we have paid deposits, which in many cases are non-refundable, in consideration for the right, but not the obligation, to purchase land or lots at a future point in time with predetermined terms. Lot option and escrow deposits are included in prepaid expenses and other assets on the consolidated balance sheets. We charge to expense non-refundable deposit and capitalized pre-acquisition costs, when it is probable that the lots will not be acquired. During the year ended December 31, 2024, 2023, and 2022 we terminated certain contracts in our markets that no longer met our investment criteria, resulting in a charges of $6.0 million, $3.4 million, and $11.6 million, respectively, which are included in other expense in our consolidated statements of operations. |
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| Model Homes and Sales Facilities | Model Homes and Sales Facilities Costs related to our model homes and sales facilities are treated in one of three ways depending on their nature. Costs directly attributable to the home including upgrades that are permanent and sold with the home are capitalized to inventory and included in cost of home sales revenues when the unit is delivered to the homebuyer. Marketing related costs, such as non-permanent signage, brochures and marketing materials as well as the cost to convert the model into a salable unit are expensed as incurred. Costs to furnish the model home sites, permanent signage, and construction of sales facilities are capitalized to property and equipment and depreciated over the estimated life of the community based on the number of lots in the community which typically range from 1 to 3 years. |
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| Property and Equipment | Property and Equipment Property and equipment are stated at cost less accumulated depreciation. Depreciation is charged to expense on the straight-line basis over the estimated useful life of each asset. The estimated useful lives for each major depreciable classification of property and equipment are as follows:
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| Financial Services | Financial Services Mortgage loans held for sale and mortgage servicing rights are carried at fair value, with gains and losses from the changes in fair value reflected in financial services revenue on the consolidated statements of operations. Management believes carrying mortgage loans held for sale at fair value improves financial reporting by mitigating volatility in reported earnings caused by measuring the fair value of the loans and the derivative instruments used to economically hedge them. Derivative instruments used to economically hedge our market and interest rate risk are carried at fair value. Derivative instruments typically include interest rate lock commitments and forward commitments on mortgage-backed securities. Changes in fair value of these derivatives, as well as any gains or losses upon settlement, are reflected in financial services revenue on the consolidated statements of operations. Net gains and losses from the sale of mortgage loans held for sale are included in financial services revenue on the consolidated statements of operations, and include (1) net gain on sale of loans, which are recognized based upon the difference between the sales proceeds and carrying value of the related loans upon sale, with sale proceeds reflecting the cash received from investors through the sale of the mortgage loan and servicing release premium; (2) the fair value of originated mortgage servicing rights; (3) the change in fair value of mortgage loans held for sale; (4) the change in fair value of derivatives instruments, including interest rate lock commitments and forward commitments on mortgage-backed securities; (5) provision for or benefit from investor reserves; and (6) fees earned from originating mortgage loans. Fees earned from originating mortgage loans, which are recognized at the time the mortgage loans are funded, include origination fees, credits, and discount points provided directly to our customers to reduce interest rates. Intercompany fees charged directly to the homebuilder related to commitment agreements entered into between our homebuilding and Financial Services segments are eliminated from financial services revenue on the consolidated statements of operations upon consolidation. Financial service costs on the consolidated statement of operations primarily consist of general and administrative costs to support our mortgage, title, insurance brokerage and escrow services. |
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| Stock-Based Compensation | Stock-Based Compensation We account for stock-based awards in accordance with ASC 718, Compensation—Stock Compensation. ASC 718 requires us to estimate the grant date fair value of stock-based compensation awards and to recognize the fair value as compensation costs over the requisite service period, which is generally three years, for all awards that vest. We estimate an annual forfeiture rate at the time of grant based on historical experience, and revise the rate in subsequent periods, if necessary, based on actual forfeiture data. The fair value of our restricted stock units and awards in the form of unrestricted shares of common stock is equal to the closing price of our common stock on the New York Stock Exchange on the date of grant. Stock-based compensation expense associated with outstanding performance share units is measured using the grant date fair value and is based on the estimated achievement of the established performance criteria at the end of each reporting period until the performance period ends, recognized on a straight-line basis over the performance period. Stock-based compensation expense is only recognized for performance share units that we expect to vest, which we estimate based upon an assessment of the probability that the performance criteria will be achieved. The performance share units granted during the fiscal years ended December 31, 2024, 2023, and 2022 have performance-based metrics measured over performance periods ending on December 31 for each three-year period. |
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| Income Taxes | Income Taxes We account for income taxes in accordance with ASC 740, Income Taxes, which requires recognition of deferred tax assets and liabilities at enacted income tax rates for the temporary differences between the financial reporting bases and the tax bases of its assets and liabilities. Any effects of changes in income tax rates or tax laws are included in the provision for income taxes in the period of enactment. When it is more likely than not that a portion or all of a deferred tax asset will not be realized in the future, the Company records a corresponding valuation allowance against the deferred tax asset. As of December 31, 2024 and 2023, we had no valuation allowance recorded against our deferred tax assets. In addition, when it is more likely than not that a tax position will be sustained upon examination by a tax authority that has full knowledge of all relevant information, the Company measures the amount of tax benefit from the position and records the largest amount of tax benefit that is more likely than not of being realized after settlement with a tax authority. The Company’s policy is to recognize interest to be paid on an underpayment of income taxes in interest expense and any related statutory penalties in the provision for income taxes on the consolidated statements of operations. As of December 31, 2024 and 2023 we had no reserves for uncertain tax positions. |
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| Goodwill | Goodwill We evaluate goodwill for possible impairment in accordance with ASC 350, Intangibles–Goodwill and Other, on an annual basis, or more frequently if events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. We use a two step process to assess whether or not goodwill can be realized. The first step is a qualitative assessment that analyzes current economic indicators associated with a particular reporting unit. If the qualitative assessment indicates a stable or improved fair value, no further testing is required.
If a qualitative assessment indicates that a significant decline to fair value of a reporting unit is more likely than not, we will proceed to the second step where we calculate the fair value of a reporting unit based on discounted future cash flows. If this step indicates that the carrying value of a reporting unit is in excess of its fair value, an impairment loss shall be recognized in an amount equal to that excess, limited to the total amount of goodwill allocated to that reporting unit.
As of December 31, 2024 and 2023, we determined our goodwill was not impaired. |
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| Business Combinations | Business Combinations We account for business combinations in accordance with ASC 805, Business Combinations, if the acquired assets assumed and liabilities incurred constitute a business. We consider acquired companies to constitute a business if the acquired net assets and processes have the ability to create outputs in the form of revenue. For acquired companies constituting a business, we recognize the identifiable assets acquired and liabilities assumed at their acquisition-date fair values and recognize any excess of total consideration paid over the fair value of the identifiable net assets as goodwill. |
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| Variable Interest Entities ("VIEs") | Variable Interest Entities (“VIEs”) We review land option contracts where we have a non-refundable deposit to determine whether the corresponding land seller is a VIE and, if so, whether we are the primary beneficiary. Although we do not have legal title to the underlying land, we are required to consolidate a VIE if we are the primary beneficiary. In determining whether we are the primary beneficiary, we consider, among other things, whether we have the power to direct the activities that most significantly impact the economic performance of the VIE. In making this determination, we consider whether we have the power to direct certain activities, including, but not limited to, determining or limiting the scope or purpose of the VIE, the ability to sell or transfer property owned or controlled by the VIE, or arranging financing for the VIE. As a result of our analysis, we determined that as of December 31, 2024 and 2023, we were not the primary beneficiary of any VIE from which we have acquired rights to land under the land option contract. As of December 31, 2024 and 2023, we had non-refundable cash deposits totaling $54.7 million and $18.3 million, respectively, classified in prepaid expenses and other assets in our consolidated balance sheets for land option contracts. The non-refundable deposit is our maximum exposure to loss for the transactions as of December 31, 2024 and 2023, respectively. |
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| Advertising and Marketing Costs | Advertising and Marketing Costs
Advertising and marketing costs are expensed as incurred and totaled $22.8 million, $14.9 million and $9.5 million for the years ended December 31, 2024, 2023 and 2022, respectively. Advertising and marketing costs are included in selling, general and administrative on the consolidated statements of operations. |
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| Reclassifications | Reclassifications Certain prior period amounts have been reclassified to conform to current period presentation. |
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| Recently Issued Accounting Standards | Recently Issued Accounting Standards
In November 2024, the FASB issued ASU No. 2024-03, “Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses” (“ASU 2024-03”), which requires disclosure of certain costs and expenses on an interim and annual basis in the notes to the financial statements. ASU 2024-03 will become effective for us for the fiscal year ending December 31, 2027. Early adoption is permitted, and guidance should be applied prospectively, with an option to apply guidance retrospectively. We are currently evaluating the impact of the adoption of ASU 2024-03 on our consolidated financial statements and related disclosures.
In December 2023, the FASB issued ASU No. 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures” (“ASU 2023-09”). ASU 2023-09 requires more disaggregated income tax disclosures, including additional information in the rate reconciliation and additional disclosures about income taxes paid. ASU 2023-09 will become effective for us for the fiscal year ending December 31, 2025. Early adoption is permitted, and guidance should be applied prospectively, with an option to apply guidance retrospectively. We are currently evaluating the impact of the adoption of ASU 2023-09 on our consolidated financial statements and related disclosures.
In November 2023, the FASB issued ASU No. 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures” (“ASU 2023-07”). ASU 2023-07 requires disclosure of significant segment expenses that are regularly provided to the chief operating decision maker (“CODM”) and included within each reported measure of segment profit or loss. The guidance also expands disclosure requirements for interim periods, as well as requires disclosure of other segment items, including the title and position of the entity’s CODM. ASU 2023-07 became effective for us for the fiscal year ending December 31, 2024 and we applied the amendments retrospectively to all prior periods presented in our consolidated financial statements. See Note 2 – Reporting Segments in the Notes to the Consolidated Financial Statements. |
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Nature of Operations and Summary of Significant Accounting Policies (Tables) |
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Dec. 31, 2024 | ||||||||||||||||||||||||||||||||||||
| Nature of Operations and Summary of Significant Accounting Policies [Abstract] | ||||||||||||||||||||||||||||||||||||
| Schedule of Estimated Lives of Property Plant and Equipment |
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Reporting Segments (Tables) |
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Dec. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Reporting Segments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Total Revenue and Pretax Income (loss) by Segment | The following table summarizes total revenue, significant expenses, and income (loss) before income tax expense by segment (in thousands):
(1)Includes cost of land sales and other revenues, and other income (expense) |
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| Schedule of Total Assets by Segment |
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Business Combinations (Tables) |
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Dec. 31, 2024 | |||||||||||||||||||||||||||||||||||||
| Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||
| Schedule Of Fair Values Of Assets Acquired And Liabilities Assumed |
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Inventories (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Inventories [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Inventories |
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Property and Equipment (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Property and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Property and Equipment |
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Prepaid Expenses and Other Assets (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Prepaid Expenses and Other Assets [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Prepaid Expenses and Other Assets |
(1)Restricted cash consists of restricted cash related to land development, earnest money deposits for home sale contracts held by third parties as required by various jurisdictions, and certain compensating balances associated with our mortgage repurchase facilities and other financing obligations. (2)During the year ended December 31, 2024, certain multi-family rental properties were completed and became available for leasing; and as such, we reclassified $149.1 million from multi-family rental properties under construction, included in prepaid expenses and other assets on the consolidated balance sheets, to property and equipment, net on the consolidated balance sheets. |
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Accrued Expenses and Other Liabilities (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Accrued Expenses and Other Liabilities [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Accrued Expenses and Other Liabilities |
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Warranties (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Warranties [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Changes in Warranty Accrual |
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Self-Insurance Reserve (Tables) |
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Dec. 31, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Self-Insurance Reserve [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Changes in Self Insurance Reserve |
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Debt (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Debt [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Outstanding Debt Obligations |
(1) The carrying value of senior notes reflects the impact of premiums, discounts, and issuance costs that are amortized to interest cost over the respective terms of the senior notes. (2) As of December 31, 2024, other financing obligations included $11.0 million related to insurance premium notes and certain secured borrowings, as well as $102.4 million outstanding under construction loan agreements. As of December 31, 2023, other financing obligations included $24.7 million related to insurance premium notes and certain secured borrowings, as well as $44.9 million outstanding under construction loan agreements. |
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| Schedule of Aggregate Annual Maturities of Debt |
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Interest on Senior Notes and Revolving Line of Credit (Tables) |
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Dec. 31, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest on Senior Notes and Revolving Line of Credit [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Capitalized Interest Costs |
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Income Taxes (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Income Taxes [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Income Tax Expense |
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| Schedule of Components of Income Tax Expense by Expense |
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| Schedule of Deferred Tax Assets and Liabilities |
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Fair Value Disclosures (Tables) |
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Dec. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Assets and Liabilities Measured at Fair Value |
(1)A portion of our mortgage loans held for investment, which were those determined to be unsaleable and transferred from mortgage loans held for sale, are recorded at fair value. The unobservable inputs used in the valuation of the mortgage loans held for investment at fair value include the value of underlying collateral, from markets where there is little observable trading activity. (2)The unobservable inputs used in the valuation of the mortgage servicing rights include mortgage prepayment rates, discount rates and cost to service, which were a weighted average of 8.5%, 10.6%, and $74 per year per loan, respectively, as of December 31, 2024 and 8.6%, 10.3%, and $72 per year per loan, respectively, as of December 31, 2023. The high and low end of the range of unobservable inputs used in the valuation did not result in a significant change to the fair value measurement. |
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| Schedule of Reconciliation of Level 3 Recurring at Fair Value |
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| Schedule of Carrying Values and Fair Values of Financial Instruments |
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Stock-Based Compensation (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| Stock-Based Compensation [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Summary of Restricted Stock Award Activity |
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| Summary of Outstanding RSUs and PSUs |
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Stockholders' Equity (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Stockholders' Equity [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Dividends Declared |
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Earnings Per Share (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Earnings Per Share, Basic and Diluted |
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Commitments and Contingencies (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||
| Commitments and Contingencies [Abstract] | |||||||||||||||||||||||||||||||||||||||||
| Maturities of Lease Liabilities |
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Reporting Segments (Narrative) (Details) |
12 Months Ended |
|---|---|
|
Dec. 31, 2024
segment
region
state
| |
| Segment Reporting Information [Line Items] | |
| Number of operating states | 17 |
| Number of geographic operating regions | region | 4 |
| Number of reportable segments | segment | 5 |
| Century Complete [Member] | |
| Segment Reporting Information [Line Items] | |
| Number of operating states | 10 |
Business Combinations (Schedule Of Fair Values Of Assets Acquired And Liabilities Assumed) (Details) - USD ($) $ in Thousands |
Dec. 31, 2024 |
Jul. 31, 2024 |
Jan. 22, 2024 |
Dec. 31, 2023 |
|---|---|---|---|---|
| Assets acquired and liabilities assumed | ||||
| Goodwill | $ 41,109 | $ 30,395 | ||
| Landmark [Member] | ||||
| Assets acquired and liabilities assumed | ||||
| Goodwill | $ 3,400 | |||
| Anglia [Member] | ||||
| Assets acquired and liabilities assumed | ||||
| Prepaid expenses and other assets | 7,885 | |||
| Inventories | 111,425 | |||
| Property and equipment, net | 127 | |||
| Amortizable intangible assets | 1,900 | |||
| Goodwill | 7,351 | $ 7,400 | ||
| Total assets | 128,688 | |||
| Accounts payable | 1,281 | |||
| Accrued expenses and other liabilities | 417 | |||
| Total liabilities | 1,698 | |||
| Net assets acquired | $ 126,990 |
Inventories (Schedule of Inventory) (Details) - USD ($) $ in Thousands |
Dec. 31, 2024 |
Dec. 31, 2023 |
Dec. 31, 2022 |
Dec. 31, 2021 |
|---|---|---|---|---|
| Inventories [Abstract] | ||||
| Homes under construction | $ 1,614,630 | $ 1,334,584 | ||
| Land and land development | 1,755,382 | 1,609,459 | ||
| Capitalized interest | 84,325 | 72,598 | $ 61,775 | $ 53,379 |
| Total inventories | $ 3,454,337 | $ 3,016,641 |
Financial Services (Narrative) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
|---|---|---|---|
Dec. 31, 2024 |
Dec. 31, 2023 |
Dec. 31, 2022 |
|
| Financial Services [Line Items] | |||
| Mortgage loans held for sale | $ 236,926 | $ 251,852 | |
| Inspire [Member] | |||
| Financial Services [Line Items] | |||
| Mortgage loans in process | 76,300 | 49,600 | |
| Mortgage loans held for sale aggregate outstanding principal balance | 241,600 | 247,700 | |
| Net gains (losses) on the sale of mortgage loans | 59,700 | 54,900 | $ 41,200 |
| Gains (losses) in fair value for loans held-for-sale | $ (8,800) | $ 2,600 | $ (9,500) |
| Inspire [Member] | Weighted Average [Member] | |||
| Financial Services [Line Items] | |||
| Interest rate | 5.50% | 5.80% | |
Property and Equipment (Narrative) (Details) $ in Millions |
12 Months Ended |
|---|---|
|
Dec. 31, 2024
USD ($)
| |
| Property and Equipment [Abstract] | |
| Gain on sale of one multi family rental property | $ 23.3 |
| Other significant noncash transaction amount | $ 149.1 |
Prepaid Expenses and Other Assets (Schedule of Prepaid Expenses and Other Assets) (Details) - USD ($) $ in Thousands |
12 Months Ended | |
|---|---|---|
Dec. 31, 2024 |
Dec. 31, 2023 |
|
| Prepaid Expenses and Other Assets [Abstract] | ||
| Prepaid insurance | $ 27,384 | $ 37,624 |
| Lot option and escrow deposits | 92,494 | 51,369 |
| Performance deposits | 10,561 | 10,170 |
| Restricted cash | 25,325 | 15,853 |
| Multi-family rental properties under construction | 119,441 | 136,300 |
| Mortgage loans held for investment | 31,858 | 27,867 |
| Mortgage servicing rights | 42,404 | 30,932 |
| Other assets and prepaid expenses | 69,917 | 40,078 |
| Total prepaid expenses and other assets | 419,384 | $ 350,193 |
| Other significant noncash transaction amount | $ 149,100 |
Accrued Expenses and Other Liabilities (Schedule of Accrued Expenses and Other Liabilities) (Details) - USD ($) $ in Thousands |
Dec. 31, 2024 |
Dec. 31, 2023 |
Dec. 31, 2022 |
|---|---|---|---|
| Accrued Expenses and Other Liabilities [Abstract] | |||
| Earnest money deposits | $ 8,786 | $ 7,933 | |
| Warranty reserve | 12,762 | 11,524 | $ 13,136 |
| Self-insurance reserve | 32,970 | 23,659 | $ 16,998 |
| Accrued compensation costs | 82,020 | 80,133 | |
| Land development and home construction accruals | 112,392 | 120,224 | |
| Accrued interest | 12,457 | 10,404 | |
| Other accrued liabilities | 40,930 | 49,515 | |
| Total accrued expenses and other liabilities | $ 302,317 | $ 303,392 |
Warranties (Narrative) (Details) - USD ($) $ in Thousands |
12 Months Ended | |
|---|---|---|
Dec. 31, 2024 |
Dec. 31, 2023 |
|
| Warranties [Abstract] | ||
| Warranty reserve adjustment | $ (3,096) | $ (3,395) |
Warranties (Schedule of Changes in Warranty Accrual) (Details) - USD ($) $ in Thousands |
12 Months Ended | |
|---|---|---|
Dec. 31, 2024 |
Dec. 31, 2023 |
|
| Warranties [Abstract] | ||
| Beginning balance | $ 11,524 | $ 13,136 |
| Warranty expense provisions | 11,059 | 9,373 |
| Payments | (6,725) | (7,590) |
| Warranty adjustment | (3,096) | (3,395) |
| Ending balance | $ 12,762 | $ 11,524 |
Self-Insurance Reserve (Narrative) (Details) - USD ($) $ in Thousands |
12 Months Ended | |
|---|---|---|
Dec. 31, 2024 |
Dec. 31, 2023 |
|
| Self-Insurance Reserve [Abstract] | ||
| Self-insurance adjustment | $ (788) | $ (3,446) |
Self-Insurance Reserve (Changes in Self Insurance Reserve) (Details) - USD ($) $ in Thousands |
12 Months Ended | |
|---|---|---|
Dec. 31, 2024 |
Dec. 31, 2023 |
|
| Self-Insurance Reserve [Abstract] | ||
| Beginning balance | $ 23,659 | $ 16,998 |
| Self-insurance expense provisions | 11,773 | 10,260 |
| Payments | (1,674) | (153) |
| Self-insurance adjustment | (788) | (3,446) |
| Ending balance | $ 32,970 | $ 23,659 |
Debt (Schedule of Outstanding Debt Obligations) (Details) - USD ($) $ in Thousands |
12 Months Ended | |||
|---|---|---|---|---|
Dec. 31, 2024 |
Dec. 31, 2023 |
Aug. 31, 2021 |
May 31, 2019 |
|
| Debt Instrument [Line Items] | ||||
| Notes payable | $ 1,107,909 | $ 1,062,471 | ||
| Revolving line of credit | 135,500 | |||
| Mortgage repurchase facilities | 232,804 | 239,298 | ||
| Total debt | 1,476,213 | 1,301,769 | ||
| Senior Note 3.875% Due August 2029 [Member] | ||||
| Debt Instrument [Line Items] | ||||
| Notes payable | $ 496,428 | 495,656 | ||
| Interest rate | 3.875% | 3.875% | ||
| Maturity date | 2029-08 | |||
| Senior Notes 6.750% Due June 2027 [Member] | ||||
| Debt Instrument [Line Items] | ||||
| Notes payable | $ 498,027 | 497,210 | ||
| Interest rate | 6.75% | 6.75% | ||
| Maturity date | 2027-06 | |||
| Construction Loan Agreement [Member] | ||||
| Debt Instrument [Line Items] | ||||
| Notes payable | $ 102,400 | 44,900 | ||
| Other Financing Obligations [Member] | ||||
| Debt Instrument [Line Items] | ||||
| Notes payable | 113,454 | 69,605 | ||
| Other Financing Obligations [Member] | Insurance Premium Notes And Certain Secured Borrowings [Member] | ||||
| Debt Instrument [Line Items] | ||||
| Notes payable | $ 11,000 | $ 24,700 |
Debt (Schedule of Aggregate Annual Maturities of Debt) (Details) - USD ($) $ in Thousands |
Dec. 31, 2024 |
Dec. 31, 2023 |
|---|---|---|
| Debt [Abstract] | ||
| 2025 | $ 243,822 | |
| 2026 | 70,550 | |
| 2027 | 500,000 | |
| 2028 | 167,386 | |
| 2029 | 500,000 | |
| Total | 1,481,758 | |
| Less: Discount and deferred financing costs, net on senior notes | (5,545) | |
| Total debt | $ 1,476,213 | $ 1,301,769 |
Interest on Senior Notes and Revolving Line of Credit (Schedule of Capitalized Interest Costs) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
|---|---|---|---|
Dec. 31, 2024 |
Dec. 31, 2023 |
Dec. 31, 2022 |
|
| Interest on Senior Notes and Revolving Line of Credit [Abstract] | |||
| Interest capitalized beginning of period | $ 72,598 | $ 61,775 | $ 53,379 |
| Interest capitalized during period | 72,013 | 56,750 | 63,065 |
| Less: capitalized interest in cost of sales | (60,286) | (45,927) | (54,669) |
| Interest capitalized end of period | $ 84,325 | $ 72,598 | $ 61,775 |
Income Taxes (Narrative) (Details) - USD ($) |
12 Months Ended | ||
|---|---|---|---|
Dec. 31, 2024 |
Dec. 31, 2023 |
Dec. 31, 2022 |
|
| Income Tax Examination [Line Items] | |||
| Federal statutory income tax | 21.00% | 21.00% | 21.00% |
| Income tax expense | $ 106,244,000 | $ 91,606,000 | $ 151,774,000 |
| Tax valuation allowance | 0 | 0 | |
| Reserves for uncertain tax positions | 0 | 0 | |
| Income tax expense impacted by the benefit from Federal Energy Credits | 6,584,000 | $ 2,596,000 | $ 18,324,000 |
| Federal income tax credit for each home meets the statute | 2,000 | ||
| Maximum [Member] | Federal [Member] | |||
| Income Tax Examination [Line Items] | |||
| Federal income tax credit for each home meets the statute | $ 5,000 | ||
| Income tax year under examination | 2024 | ||
| Minimum [Member] | Federal [Member] | |||
| Income Tax Examination [Line Items] | |||
| Federal income tax credit for each home meets the statute | $ 2,500 | ||
| Income tax year under examination | 2019 | ||
Income Taxes (Schedule of Income Tax Expense) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
|---|---|---|---|
Dec. 31, 2024 |
Dec. 31, 2023 |
Dec. 31, 2022 |
|
| Income Taxes [Abstract] | |||
| Federal | $ 92,177 | $ 73,003 | $ 119,255 |
| State and local | 19,289 | 14,745 | 32,136 |
| Total current | 111,466 | 87,748 | 151,391 |
| Federal | (4,467) | 3,020 | 361 |
| State and local | (755) | 838 | 22 |
| Total deferred | (5,222) | 3,858 | 383 |
| Income tax expense | $ 106,244 | $ 91,606 | $ 151,774 |
Income Taxes (Schedule of Components of Income Tax Expense by Expense) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
|---|---|---|---|
Dec. 31, 2024 |
Dec. 31, 2023 |
Dec. 31, 2022 |
|
| Income Taxes [Abstract] | |||
| Federal statutory income tax expense | $ 92,413 | $ 73,652 | $ 142,149 |
| State income tax expense, net of federal income tax expense benefit | 15,439 | 12,966 | 26,284 |
| Executive compensation | 6,470 | 9,507 | 5,889 |
| Excess tax benefits upon vesting of share based payment awards | (863) | (311) | (675) |
| Federal energy credits | (6,584) | (2,596) | (18,324) |
| State tax credits | (185) | (635) | |
| Other | (631) | (1,427) | (2,914) |
| Income tax expense | $ 106,244 | $ 91,606 | $ 151,774 |
Income Taxes (Schedule of Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands |
Dec. 31, 2024 |
Dec. 31, 2023 |
|---|---|---|
| Income Taxes [Abstract] | ||
| Warranty reserves | $ 3,196 | $ 2,775 |
| Stock-based compensation | 1,938 | 1,682 |
| Accrued compensation and other | 13,628 | 12,812 |
| Inventories, additional costs capitalized for tax | 18,887 | 18,896 |
| Lease liabilities | 3,675 | 4,130 |
| Amortizable intangible assets | 4,103 | |
| Other | 9,813 | 6,518 |
| Deferred tax asset | 55,240 | 46,813 |
| Prepaid expenses | (305) | (284) |
| Property and equipment | (12,325) | (13,061) |
| Mortgage servicing rights | (10,233) | (7,449) |
| Right of use assets | (3,355) | (3,909) |
| Other | (6,802) | (5,112) |
| Deferred tax liability | (33,020) | (29,815) |
| Net deferred tax asset | $ 22,220 | $ 16,998 |
Fair Value Disclosures (Narrative) (Details) $ in Thousands |
12 Months Ended | ||
|---|---|---|---|
|
Dec. 31, 2024
USD ($)
item
|
Dec. 31, 2023
USD ($)
item
|
Dec. 31, 2022
USD ($)
item
|
|
| Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
| Impairment charge | $ 8,778 | $ 1,877 | $ 10,149 |
| Carrying value of communities before impairment | $ 49,500 | ||
| Number of communities impairment charges | item | 9 | 5 | 22 |
| Century Complete And Texas [Member] | |||
| Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
| Carrying value of communities before impairment | $ 49,500 | ||
| Number of communities impairment charges | item | 9 | ||
| Level 3 [Member] | |||
| Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
| Weighted average discount rate inventory measurement input | 14.00% | 12.00% | 12.00% |
Fair Value Disclosures (Schedule of Reconciliation of Level 3 Recurring at Fair Value) (Details) - USD ($) $ in Thousands |
12 Months Ended | |
|---|---|---|
Dec. 31, 2024 |
Dec. 31, 2023 |
|
| Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
| Beginning of period | $ 30,932 | |
| End of period | 42,404 | $ 30,932 |
| Mortgage Servicing Rights [Member] | ||
| Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
| Beginning of period | 30,932 | 24,164 |
| Originations | 10,827 | 7,755 |
| Settlements | (2,453) | (1,417) |
| Changes in fair value | 3,098 | 430 |
| End of period | 42,404 | 30,932 |
| Mortgage Loans Held-For-Investment At Fair Value [Member] | ||
| Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
| Beginning of period | 21,041 | 18,875 |
| Transfers from loans held for sale | 2,157 | 4,666 |
| Settlements | (813) | (1,368) |
| Reduction in unpaid principal balance | (569) | (881) |
| Changes in fair value | (338) | (251) |
| End of period | $ 21,478 | $ 21,041 |
Post-Retirement Plan (Narrative) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
|---|---|---|---|
Dec. 31, 2024 |
Dec. 31, 2023 |
Dec. 31, 2022 |
|
| Post-Retirement Plan [Abstract] | |||
| Matching contribution, percentage | 50.00% | 50.00% | 50.00% |
| Employer contribution, percent of employee's gross pay | 6.00% | 6.00% | 6.00% |
| Contribution, amount | $ 4.4 | $ 3.0 | $ 3.3 |
Stock-Based Compensation (Summary of Outstanding RSUs and PSUs) (Details) - RSUs And PSUs [Member] $ in Thousands |
12 Months Ended |
|---|---|
|
Dec. 31, 2024
USD ($)
shares
| |
| Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
| Unvested units | shares | 1,309 |
| Unrecognized compensation cost | $ | $ 28,269 |
| Weighted-average years to recognize compensation cost | 1 year 7 months 20 days |
Earnings Per Share (Narrative) (Details) - shares shares in Millions |
12 Months Ended | ||
|---|---|---|---|
Dec. 31, 2024 |
Dec. 31, 2023 |
Dec. 31, 2022 |
|
| Earnings Per Share [Abstract] | |||
| Performance condition securities excluded from computation of diluted EPS | 0.4 | 0.8 | 0.5 |
Earnings Per Share (Schedule of Earnings Per Share, Basic and Diluted) (Details) - USD ($) $ / shares in Units, $ in Thousands |
12 Months Ended | ||
|---|---|---|---|
Dec. 31, 2024 |
Dec. 31, 2023 |
Dec. 31, 2022 |
|
| Numerator | |||
| Net income | $ 333,816 | $ 259,224 | $ 525,126 |
| Denominator | |||
| Weighted average common shares outstanding - basic | 31,510,282 | 31,918,942 | 32,578,967 |
| Dilutive effect of stock-based compensation awards | 600,553 | 290,417 | 398,968 |
| Weighted average common shares outstanding - diluted | 32,110,835 | 32,209,359 | 32,977,935 |
| Earnings per share: | |||
| Basic | $ 10.59 | $ 8.12 | $ 16.12 |
| Diluted | $ 10.40 | $ 8.05 | $ 15.92 |
Commitments and Contingencies (Narrative) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
|---|---|---|---|
Dec. 31, 2024 |
Dec. 31, 2023 |
Dec. 31, 2022 |
|
| Commitments And Contingencies [Line Items] | |||
| Outstanding letters of credit and performance bonds | $ 563.5 | $ 510.5 | |
| Operating lease expense | $ 7.3 | $ 8.0 | $ 7.9 |
| Minimum [Member] | |||
| Commitments And Contingencies [Line Items] | |||
| Lease term | 1 year | ||
| Maximum [Member] | |||
| Commitments And Contingencies [Line Items] | |||
| Lease term | 10 years | ||
Commitments and Contingencies (Maturities of Lease Liabilities) (Details) $ in Thousands |
Dec. 31, 2024
USD ($)
|
|---|---|
| Leases [Abstract] | |
| 2025 | $ 4,308 |
| 2026 | 4,847 |
| 2027 | 3,178 |
| 2028 | 2,883 |
| 2029 | 761 |
| Thereafter | 47 |
| Total | 16,024 |
| Less: discount | (1,739) |
| Total lease liabilities | $ 14,285 |
| Operating Lease, Liability, Statement of Financial Position [Extensible List] | Accrued Liabilities and Other Liabilities |