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REAL ESTATE INVENTORY AND LAND DEPOSITS
6 Months Ended
Jun. 30, 2021
Real Estate [Abstract]  
REAL ESTATE INVENTORY AND LAND DEPOSITS REAL ESTATE INVENTORY AND LAND DEPOSITSInventory consists of the following (in thousands):
As of
June 30,
2021
December 31, 2020
Real estate developed and under development $4,011,925 $3,862,785 
Real estate held for development or held for sale (1)
114,807 110,954 
Operating communities (2)
1,385,501 1,072,134 
Capitalized interest180,520 163,780 
Total owned inventory5,692,753 5,209,653 
Consolidated real estate not owned63,717 122,773 
Total real estate inventory$5,756,470 $5,332,426 
(1) Real estate held for development or held for sale includes properties which are not in active production. This includes raw land recently purchased or awaiting entitlement, and, if applicable, long-term strategic assets.
(2) Operating communities consist of all vertical construction costs relating to homes in progress and completed homes for all active inventory.

The development status of our land inventory is as follows (dollars in thousands):
 
As of
June 30, 2021December 31, 2020
 Owned LotsBook Value of Land
and Development
Owned LotsBook Value of Land
and Development
Raw5,252 $232,473 7,032 $239,554 
Partially developed21,749 1,322,628 19,495 1,215,419 
Finished22,417 2,444,805 21,396 2,388,177 
Long-term strategic assets158 13,462 158 13,462 
Total homebuilding owned lots49,576 4,013,368 48,081 3,856,612 
Commercial assets5,298 113,364 5,298 117,126 
Total owned lots54,874 $4,126,732 53,379 $3,973,738 

Land Deposits — We provide deposits related to land options and land purchase contracts, which are capitalized when paid and classified as Land deposits until the associated property is purchased.

As of June 30, 2021 and December 31, 2020, we had the right to purchase 9,353 and 7,449 lots under land option purchase contracts, respectively, for an aggregate purchase price of $596.7 million and $485.4 million, respectively. We do not have title to the properties, and the creditors generally have no recourse against us. As of June 30, 2021 and December 31, 2020, our exposure to loss related to our option contracts with third parties and unconsolidated entities consisted of non-refundable deposits totaling $90.6 million and $65.3 million, respectively.

We also have various land banking arrangements. As of June 30, 2021 and December 31, 2020, we had the right to purchase 1,251 lots and 2,426 lots under such land agreements for an aggregate purchase price of $112.7 million and $275.0 million, respectively. We are not legally obligated to purchase the balance of the lots. As of June 30, 2021 and December 31, 2020, our exposure to loss related to deposits on land banking arrangements totaled $26.6 million and $60.3 million, respectively.


Capitalized Interest — Interest capitalized, incurred and amortized is as follows (in thousands):
 Three Months Ended
June 30,
Six Months Ended
June 30,
 2021202020212020
Interest capitalized - beginning of period$174,174 $128,870 $163,780 $115,593 
Interest incurred40,416 43,237 78,135 80,812 
Interest amortized to cost of home closings(34,070)(28,667)(61,395)(52,965)
Interest capitalized - end of period$180,520 $143,440 $180,520 $143,440