Interest

3 Months Ended

Dec. 31, 2020

Real Estate [Abstract]

Interest

Interest

Interest capitalized during the three months ended December 31, 2020 and 2019 was limited by the balance of inventory eligible for capitalization. The following table presents certain information regarding interest for the periods presented:

	Three Months Ended December 31,
in thousands	2020		2019
Capitalized interest in inventory, beginning of period	$	119,659	$	136,565
Interest incurred	19,902		21,556
Interest expense not qualified for capitalization and included as other expense (a)	(1,600)		(1,442)
Capitalized interest amortized to home construction and land sales expenses (b)	(18,813)		(19,669)
Capitalized interest in inventory, end of period	$	119,148	$	137,010

(a) The amount of interest capitalized depends on the qualified inventory balance, which considers the status of the Company's inventory holdings. Qualified inventory balance includes the majority of homes under construction and development projects in progress but excludes land held for future development and land held for sale.

(b) Capitalized interest amortized to home construction and land sales expenses varies based on the number of homes closed during the period and land sales, if any, as well as other factors.