Interest

9 Months Ended

Jun. 30, 2022

Interest capitalized during the three and nine months ended June 30, 2022 and 2021 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 June 30,				Nine Months Ended June 30,
in thousands	2022		2021		2022		2021
Capitalized interest in inventory, beginning of period	$	112,686	$	113,414	$	106,985	$	119,659
Interest incurred	18,728		19,270		55,292		58,517

Interest expense not qualified for capitalization and included as other expense (a)	—		(212)		—		(2,781)
Capitalized interest amortized to home construction and land sales expenses (b)	(15,679)		(22,529)		(46,542)		(65,452)
Capitalized interest in inventory, end of period	$	115,735	$	109,943	$	115,735	$	109,943

(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 land under development 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.