Company: LGIH
Filing Date: 2025-02-26
Form Type: 10-K
Source: 0001580670-25-000016
Chunk: 171

Company: LGI Homes, Inc.
Filing Date: 2025-02-26
Form: 10-K
Item: Item 1
Chunk 171
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53,317 17,582 70,899 

(1)Of the 53,317 owned lots as of December 31, 2024, 37,432 were raw/under development lots and 15,885 were finished lots.

Homes in Inventory

When entering a new community, we intend to build a sufficient number of move-in ready homes to meet our budgets. We base future home starts on home closings. As homes are closed, we start more homes to maintain our inventory. As of December 31, 2024, we had a total of 2,685 completed homes, including information centers, and 1,358 homes in progress.

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The following is a summary of our homes in inventory by reportable segment as of December 31, 2024 (dollar values in thousands):

Reportable SegmentHomes in Inventory (1)Inventory Value (1) Central1,150 $263,005 Southeast845 178,907 Northwest321 130,377 West688 204,018 Florida866 229,432 Total3,870 $1,005,739 

(1)Includes homes in progress and completed homes; excludes information centers.

Backlog

See discussion included in “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Backlog.”

Raw Materials and Labor 

When constructing homes, we use various materials and components. We generally contract for our materials and labor at a fixed price for the anticipated construction period of our homes. This allows us to mitigate the risks associated with increases in building materials and labor costs between the time construction begins on a home and the time it is closed. Typically, the raw materials and most of the components used in our business are readily available in the United States. We purchase some components and materials centrally to leverage our purchasing power to achieve volume discounts, a practice that often reduces costs and ensures timely deliveries. We typically do not store significant inventories of construction materials, except for work in progress materials for homes under construction. In addition, the majority of our raw materials are supplied to us by our subcontractors and are included in the price of our contract with such subcontractors. Most of the raw materials necessary for our subcontractors are standard items carried by major suppliers. Our construction work is substantially completed by third-party subcontractors, most of whom are non-unionized. We continue to monitor the supply markets to achieve the best prices available. Typically, the price changes that most