LGI Homes (LGIH) 10-Q 2 Nov 21 2021 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2021	Oct. 29, 2021
Entity Information [Line Items]
Entity Central Index Key	0001580670
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q3
Amendment Flag	false
Document Type	10-Q
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Sep. 30, 2021
Entity File Number	001-36126
Entity Registrant Name	LGI HOMES, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	46-3088013
Entity Address, Address Line One	1450 Lake Robbins Drive,
Entity Address, Address Line Two	Suite 430,
Entity Address, City or Town	The Woodlands,
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	77380
City Area Code	(281)
Local Phone Number	362-8998
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Title of 12(b) Security	Common Stock, par value $0.01 per share
Trading Symbol	LGIH
Security Exchange Name	NASDAQ
Entity Common Stock, Shares Outstanding		24,273,191

CONSOLIDATED BALANCE SHEETS (Un

CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
ASSETS
Cash and cash equivalents	$ 46,717	$ 35,942
Accounts receivable	49,171	115,939
Real estate inventory	1,908,135	1,569,489
Pre-acquisition costs and deposits	50,267	37,213
Property and equipment, net	13,364	3,618
Other assets	66,272	44,882
Deferred tax assets, net	7,613	6,986
Goodwill	12,018	12,018
Total assets	2,153,557	1,826,087
LIABILITIES AND EQUITY
Accounts payable	35,455	13,676
Accrued expenses and other liabilities	116,234	135,008
Notes payable	666,094	538,398
Total liabilities	817,783	687,082
COMMITMENTS AND CONTINGENCIES
EQUITY
Common stock, par value $0.01, 250,000,000 shares authorized, 26,941,222 shares issued and 24,273,191 shares outstanding as of September 30, 2021 and 26,741,554 shares issued and 24,983,561 shares outstanding as of December 31, 2020	269	267
Additional paid-in capital	286,709	270,598
Retained earnings	1,252,619	934,277
Treasury stock, at cost, 2,668,031 shares and 1,757,993 shares, respectively	(203,823)	(66,137)
Total equity	1,335,774	1,139,005
Total liabilities and equity	$ 2,153,557	$ 1,826,087

CONSOLIDATED BALANCE SHEETS (_2

CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares	Sep. 30, 2021	Dec. 31, 2020
Statement of Financial Position [Abstract]
Common Stock, Par or Stated Value Per Share	$ 0.01	$ 0.01
Common Stock, Shares Authorized	250,000,000	250,000,000
Common Stock, Shares, Issued	26,941,222	26,741,554
Common Stock, Shares, Outstanding	24,273,191	24,983,561
Treasury Stock, Shares	2,668,031	1,757,993

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Income Statement [Abstract]
Home sales revenues	$ 751,608	$ 534,202	$ 2,249,073	$ 1,470,531
Cost of sales	549,319	398,971	1,642,756	1,110,763
Selling expenses	39,871	35,470	127,450	98,193
General and administrative	24,480	22,320	72,479	62,422
Operating income	137,938	77,441	406,388	199,153
Loss on extinguishment of debt	13,314	0	13,976	0
Other income, net	(2,370)	(374)	(6,979)	(2,148)
Net income before income taxes	126,994	77,815	399,391	201,301
Income tax provision	26,444	(11,189)	81,049	13,834
Net income	$ 100,550	$ 89,004	$ 318,342	$ 187,467
Earnings per share:
Basic (in dollars per share)	$ 4.10	$ 3.55	$ 12.85	$ 7.45
Diluted (in dollars per share)	$ 4.05	$ 3.52	$ 12.72	$ 7.40
Weighted average shares outstanding:
Basic (in shares)	24,508,134	25,089,424	24,766,260	25,162,162
Diluted (in shares)	24,824,320	25,257,053	25,030,161	25,328,555

CONSOLIDATED STATEMENTS OF EQUI

CONSOLIDATED STATEMENTS OF EQUITY (Unaudited) - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-In Capital	Retained Earnings	Treasury Stock
Beginning Balance (in shares) at Dec. 31, 2019		26,398,409
Beginning Balance at Dec. 31, 2019	$ 845,193	$ 264	$ 252,603	$ 610,382	$ (18,056)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	42,839			42,839
Restricted stock units granted for accrued annual bonuses	222		222
Stock Repurchased During Period, Value	(31,335)				(31,335)
Compensation expense for equity awards	1,853		1,853
Stock issued under employee incentive plans (in shares)		282,065
Stock issued under employee incentive plans	833	$ 2	831
Ending Balance (in shares) at Mar. 31, 2020		26,680,474
Ending Balance at Mar. 31, 2020	859,605	$ 266	255,509	653,221	(49,391)
Beginning Balance (in shares) at Dec. 31, 2019		26,398,409
Beginning Balance at Dec. 31, 2019	845,193	$ 264	252,603	610,382	(18,056)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	187,467
Ending Balance (in shares) at Sep. 30, 2020		26,706,454
Ending Balance at Sep. 30, 2020	1,012,670	$ 267	263,945	797,849	(49,391)
Beginning Balance (in shares) at Mar. 31, 2020		26,680,474
Beginning Balance at Mar. 31, 2020	859,605	$ 266	255,509	653,221	(49,391)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	55,624			55,624
Compensation expense for equity awards	2,613		2,613
Stock issued under employee incentive plans (in shares)		14,705
Stock issued under employee incentive plans	940	$ 1	939
Ending Balance (in shares) at Jun. 30, 2020		26,695,179
Ending Balance at Jun. 30, 2020	918,782	$ 267	259,061	708,845	(49,391)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	89,004			89,004
Compensation expense for equity awards	3,926		3,926
Stock issued under employee incentive plans (in shares)		11,275
Stock issued under employee incentive plans	958	$ 0	958
Ending Balance (in shares) at Sep. 30, 2020		26,706,454
Ending Balance at Sep. 30, 2020	1,012,670	$ 267	263,945	797,849	(49,391)
Beginning Balance (in shares) at Dec. 31, 2020		26,741,554
Beginning Balance at Dec. 31, 2020	1,139,005	$ 267	270,598	934,277	(66,137)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	99,658			99,658
Restricted stock units granted for accrued annual bonuses	272		272
Stock Repurchased During Period, Value	(25,827)				(25,827)
Compensation expense for equity awards	3,422		3,422
Stock issued under employee incentive plans (in shares)		167,089
Stock issued under employee incentive plans	2,108	$ 2	2,106
Ending Balance (in shares) at Mar. 31, 2021		26,908,643
Ending Balance at Mar. 31, 2021	1,218,638	$ 269	276,398	1,033,935	(91,964)
Beginning Balance (in shares) at Dec. 31, 2020		26,741,554
Beginning Balance at Dec. 31, 2020	1,139,005	$ 267	270,598	934,277	(66,137)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	318,342
Ending Balance (in shares) at Sep. 30, 2021		26,941,222
Ending Balance at Sep. 30, 2021	1,335,774	$ 269	286,709	1,252,619	(203,823)
Beginning Balance (in shares) at Mar. 31, 2021		26,908,643
Beginning Balance at Mar. 31, 2021	1,218,638	$ 269	276,398	1,033,935	(91,964)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	118,134			118,134
Stock Repurchased During Period, Value	(55,776)				(55,776)
Compensation expense for equity awards	3,395		3,395
Stock issued under employee incentive plans (in shares)		18,050
Stock issued under employee incentive plans	2,015	$ 0	2,015
Ending Balance (in shares) at Jun. 30, 2021		26,926,693
Ending Balance at Jun. 30, 2021	1,286,406	$ 269	281,808	1,152,069	(147,740)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	100,550
Stock Repurchased During Period, Value	(56,083)				(56,083)
Compensation expense for equity awards	3,352		3,352
Stock issued under employee incentive plans (in shares)		14,529
Stock issued under employee incentive plans	1,549	$ 0	1,549
Ending Balance (in shares) at Sep. 30, 2021		26,941,222
Ending Balance at Sep. 30, 2021	$ 1,335,774	$ 269	$ 286,709	$ 1,252,619	$ (203,823)

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Cash flows from operating activities:
Net income	$ 318,342	$ 187,467
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	832	509
Loss on extinguishment of debt	13,976	0
Gain on disposal of assets	(880)	0
Compensation expense for equity awards	10,169	8,392
Deferred income taxes	(627)	(832)
Changes in assets and liabilities:
Accounts receivable	66,768	(5,627)
Real estate inventory	(286,619)	(48,781)
Pre-acquisition costs and deposits	(6,328)	2,299
Other assets	(10,702)	(33,917)
Accounts payable	20,556	18,727
Accrued expenses and other liabilities	(24,400)	(15,256)
Net cash provided by operating activities	101,087	112,981
Cash flows from investing activities:
Purchases of property and equipment	(1,641)	(1,161)
Investment in unconsolidated entity	(1,324)	(1,125)
Payment for business acquisitions	(66,864)	0
Net cash used in investing activities	(69,829)	(2,286)
Cash flows from financing activities:
Proceeds from notes payable	1,076,419	203,056
Payments on notes payable	(944,000)	(275,000)
Redemption Premium	(10,314)	0
Loan issuance costs	(10,572)	(2,155)
Proceeds from sale of stock, net of offering expenses	5,670	2,729
Stock repurchase	(137,686)	(31,335)
Net cash used in financing activities	(20,483)	(102,705)
Net increase in cash and cash equivalents	10,775	7,990
Cash and cash equivalents, beginning of period	35,942	38,345
Cash and cash equivalents, end of period	$ 46,717	$ 46,335

Organization and Basis of Prese

Organization and Basis of Presentation	9 Months Ended
	Sep. 30, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization and Basis of Presentation Disclosures	ORGANIZATION AND BASIS OF PRESENTATION Organization and Description of the Business LGI Homes, Inc., a Delaware corporation (the “Company”, “we,” “us,” or “our”), is engaged in the development of communities and the design, construction and sale of new homes in Texas, Arizona, Florida, Georgia, New Mexico, Colorado, North Carolina, South Carolina, Washington, Tennessee, Minnesota, Oklahoma, Alabama, California, Oregon, Nevada, West Virginia, Virginia and Pennsylvania. Basis of Presentation The unaudited consolidated financial statements have been prepared in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. These financial statements should be read in conjunction with the consolidated financial statements included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2020. The accompanying unaudited consolidated financial statements include all adjustments that are of a normal recurring nature and necessary for the fair presentation of our results for the interim periods presented. Results for interim periods are not necessarily indicative of results to be expected for the full year. The accompanying unaudited financial statements as of September 30, 2021, and for the three and nine months ended September 30, 2021 and 2020, include the accounts of the Company and its subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. Use of Estimates The preparation of financial statements in conformity with 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 financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates, and these differences could have a significant impact on the financial statements.

Revenues

Revenues	9 Months Ended
	Sep. 30, 2021
Revenue from Contract with Customer [Abstract]
Revenues Disclosure	REVENUES Revenue Recognition Revenues from home sales are recognized when control of the promised goods or services is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services. Revenues from home sales are recorded at the time each home sale is closed, title and possession are transferred to the customer and we have no significant continuing involvement with the home. Home sales discounts and incentives granted to customers, which are related to the customers’ closing costs that we pay on the customers’ behalf , are recorded as a reduction of revenue in our consolidated financial statements of operations. The following table presents our home sales revenues disaggregated by revenue stream (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Retail home sales revenues $ 650,041 $ 515,221 $ 1,990,439 $ 1,369,130 Wholesale home sales revenues 101,567 18,981 258,634 101,401 Total home sales revenues $ 751,608 $ 534,202 $ 2,249,073 $ 1,470,531 The following table presents our home sales revenues disaggregated by geography, based on our determined reportable segments in Note 13 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Central $ 287,878 $ 186,909 $ 924,591 $ 520,608 Southeast 146,166 130,131 442,431 347,155 Northwest 148,515 91,138 372,903 249,455 West 90,592 62,935 252,553 182,012 Florida 78,457 63,089 256,595 171,301 Total home sales revenues $ 751,608 $ 534,202 $ 2,249,073 $ 1,470,531 Home Sales Revenues We generate revenues primarily by delivering move-in ready entry-level and move-up spec homes sold under our LGI Homes brand and our luxury series spec homes sold under our Terrata Homes brand. Retail homes sold under both our LGI Homes brand and Terrata Homes brand focus on providing move-in ready homes with standardized features within favorable markets that meet certain demographic and economic conditions. Our LGI Homes brand primarily markets to entry-level or first-time homebuyers, while our Terrata Homes brand primarily markets to move-up homebuyers. Wholesale homes are primarily sold under a bulk sales agreement and focus on providing move-in ready homes with standardized features to real estate investors that will ultimately use the single-family homes as rental properties. Performance Obligations Our contracts with customers include a single performance obligation to transfer a completed home to the customer. We generally determine selling price per home on the expected cost plus margin. Our contracts contain no significant financing terms as customers who finance do so through a third party. Performance obligations are satisfied at a moment in time when the home is complete and control of the asset is transferred to the customer at closing. Home sales proceeds are generally received from the title company within a few business days after closing. Sales and broker commissions are incremental costs incurred to obtain a contract with a customer that would not have been incurred if the contract had not been obtained. Sales and broker commissions are expensed upon fulfillment of a home closing. Advertising costs are costs to obtain a contract that would have been incurred regardless of whether the contract was obtained and are recognized as an expense when incurred. Sales and broker commissions and advertising costs are recorded within sales and marketing expense presented in our consolidated statements of operations as selling expenses.

Real Estate Inventory

Real Estate Inventory	9 Months Ended
	Sep. 30, 2021
Inventory Disclosure [Abstract]
Real Estate Inventory Disclosures	REAL ESTATE INVENTORY Our real estate inventory consists of the following (in thousands): September 30, December 31, 2021 2020 Land, land under development and finished lots $ 1,211,693 $ 981,838 Information centers 27,427 30,201 Homes in progress 581,348 337,364 Completed homes 87,667 220,086 Total real estate inventory $ 1,908,135 $ 1,569,489 Inventory is stated at cost unless the carrying amount is determined not to be recoverable, in which case the affected inventory is written down to fair value. Land, development and other project costs, including interest and property taxes incurred during development and home construction, net of expected reimbursable development costs, are capitalized to real estate inventory. Land development and other common costs that benefit the entire community, including field construction supervision and related direct overhead, are allocated to individual lots or homes, as appropriate. The costs of lots are transferred to homes in progress when home construction begins. Home construction costs and related carrying charges are allocated to the cost of individual homes using the specific identification method. Costs that are not specifically identifiable to a home are allocated on a pro rata basis, which we believe approximates the costs that would be determined using an allocation method based on relative sales values since the individual lots or homes within a community are similar in value. Inventory costs for completed homes are expensed to cost of sales as homes are closed. Changes to estimated total development costs subsequent to initial home closings in a community are generally allocated to the remaining unsold lots and homes in the community on a pro rata basis. The life cycle of a community generally ranges from two Interest and financing costs incurred under our debt obligations, as more fully discussed in Note 5 , are capitalized to qualifying real estate projects under development and homes under construction. On May 6, 2021, we acquired certain real estate assets owned by KenRoe Inc. and its affiliated entities, including R Home LLC and Paxmar Land Development (collectively, “KenRoe”), and assumed certain related liabilities. As a result of the KenRoe acquisition, we expanded our Minnesota presence in the Minneapolis market. We acquired approximately 100 homes under construction and more than 3,000 owned and controlled lots. The total purchase price for the KenRoe assets, primarily consisting of inventory, was approximately $27.3 million in cash, subject to certain potential post-closing adjustments. The acquisition is accounted for in accordance with Accounting Standards Codification (“ASC”) Topic 805, Business Combinations (“ASC 805”). Our purchase accounting for KenRoe as of September 30, 2021 is preliminary and we expect to complete the working capital adjustment and valuation of the tangible assets, intangible assets and liabilities assumed as of the acquisition date within one year from the acquisition date.

Accrued Expenses and Other Liab

Accrued Expenses and Other Liabilities	9 Months Ended
	Sep. 30, 2021
Payables and Accruals [Abstract]
Accrued Expenses and Other Liabilities Disclosures	ACCRUED EXPENSES AND OTHER LIABILITIES Accrued and other liabilities consist of the following (in thousands): September 30, December 31, 2021 2020 Taxes payable $ 7,818 $ 26,181 Real estate inventory development and construction payable 42,048 29,938 Accrued compensation, bonuses and benefits 19,105 28,579 Accrued interest 4,263 10,853 Inventory related obligations 6,331 4,515 Lease liability 4,844 5,287 Warranty reserve 7,150 5,350 Contract deposits 16,122 17,151 Other 8,553 7,154 Total accrued expenses and other liabilities $ 116,234 $ 135,008 Inventory Related Obligations We own lots in certain communities in Arizona, Florida and Texas that have Community Development Districts or similar utility and infrastructure development special assessment programs that allocate a fixed amount of debt service associated with development activities to each lot. This obligation for infrastructure development is attached to the land, which is typically payable over a 30-year period and is ultimately assumed by the homebuyer when home sales are closed. Such obligations represent a non-cash cost of the lots. Estimated Warranty Reserve We typically provide homebuyers with a one-year warranty on the house and a ten-year limited warranty for major defects in structural elements such as framing components and foundation systems. Changes to our warranty accrual are as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Warranty reserves, beginning of period $ 6,550 $ 3,950 $ 5,350 $ 3,500 Warranty provision 2,424 1,284 8,409 4,108 Warranty expenditures (1,824) (1,084) (6,609) (3,458) Warranty reserves, end of period $ 7,150 $ 4,150 $ 7,150 $ 4,150

Notes Payable

Notes Payable	9 Months Ended
	Sep. 30, 2021
Debt Disclosure [Abstract]
Notes Payable Disclosures	NOTES PAYABLE Revolving Credit Agreement On April 28, 2021, we entered into that certain Fifth Amended and Restated Credit Agreement with several financial institutions, and Wells Fargo Bank, National Association, as administrative agent (the “Credit Agreement”), which amends and restates that certain Fourth Amended and Restated Credit Agreement, dated as of May 6, 2019 (as amended, the “2020 Credit Agreement”). The Credit Agreement (a) increases the commitments to $850.0 million, (b) allows the Company to increase the commitments by up to $100.0 million, subject to terms and conditions, (c) extends the maturity to April 28, 2025 for all lenders, (d) increases the sublimit for letters of credit to $50.0 million, (e) adds unrestricted cash in excess of $10.0 million as a component of the borrowing base and removes certain exclusions from the borrowing base, (f) reduces the applicable margin for LIBOR loans to a range of 1.45% to 2.10%, based on our leverage ratio, (g) reduces the LIBOR floor to 0.50%, (h) increases the minimum tangible net worth requirement to $850.0 million plus 75% of the net proceeds of equity issuances after December 31, 2020 and 50% of consolidated earnings for each quarter ending after March 31, 2021 and (i) provides for a “hardwired” transition from LIBOR loan pricing that is intended to be economically neutral to the Company; otherwise, the Credit Agreement is on substantially the same terms as the 2020 Credit Agreement. As of September 30, 2021, the borrowing base under the Credit Agreement was $1.1 billion, of which borrowings, including the 2029 Senior Notes (as defined herein), of $679.0 million were outstanding, $8.3 million of letters of credit were outstanding and $459.6 million was available to borrow under the Credit Agreement. Interest is paid monthly on borrowings at LIBOR plus 1.45%. The Credit Agreement applicable margin for LIBOR loans ranges from 1.45% to 2.10% based on our leverage ratio. At September 30, 2021, LIBOR was 0.08%; however, the Credit Agreement has a 0.50% LIBOR floor. The Credit Agreement contains various financial covenants, including a minimum tangible net worth, a leverage ratio, a minimum liquidity amount and an EBITDA to interest expense ratio. The Credit Agreement contains various covenants that, among other restrictions, limit the amount of our additional debt and our ability to make certain investments. At September 30, 2021, we were in compliance with all of the covenants contained in the Credit Agreement. Senior Notes Offerings On June 28, 2021, we issued $300.0 million aggregate principal amount of our 4.000% Senior Notes due 2029 (the “2029 Senior Notes”) in an offering to persons reasonably believed to be qualified institutional buyers in the United States pursuant to Rule 144A (“Rule 144A”) under the Securities Act of 1933, as amended (the “Securities Act”), and to certain non-U.S. persons in transactions outside the United States pursuant to Regulation S (“Regulation S”) under the Securities Act. Interest on the 2029 Senior Notes accrues at a rate of 4.000% per annum, payable semi-annually in arrears on January 15 and July 15 of each year, commencing on January 15, 2022. The 2029 Senior Notes mature on July 15, 2029. Terms of the 2029 Senior Notes are governed by an Indenture, dated as of July 6, 2018, and Third Supplemental Indenture thereto, dated as of June 28, 2021, as may be supplemented from time to time, among us, our subsidiaries that guarantee our obligations under the Credit Agreement and Wilmington Trust, National Association, as trustee. On July 6, 2018, we issued $300.0 million aggregate principal amount of our 6.875% Senior Notes due 2026 (the “2026 Senior Notes”) in an offering to persons reasonably believed to be qualified institutional buyers in the United States pursuant to Rule 144A and to certain non-U.S. persons in transactions outside the United States pursuant to Regulation S. On July 15, 2021, we redeemed all of the outstanding 2026 Senior Notes, which resulted in the principal payment of $300.0 million and a redemption premium of $10.3 million. Additionally, we expensed $3.0 million of deferred financing costs and discounts that were being previously amortized in association with the 2026 Senior Notes. We financed the redemption of the 2026 Senior Notes with a portion of the net proceeds from the offering of the 2029 Senior Notes, together with cash on hand. Notes payable consist of the following (in thousands): September 30, 2021 December 31, 2020 Notes payable under the Credit Agreement ($850.0 million revolving credit facility at September 30, 2021) maturing on April 28, 2025; interest paid monthly at LIBOR plus 1.45%. $ 379,041 $ 246,621 4.000% Senior Notes due July 15, 2029; interest paid semi-annually at 4.000%. 300,000 — 6.875% Senior Notes due July 15, 2026; interest paid semi-annually at 6.875%. — 300,000 Net discount and debt issuance costs (12,947) (8,223) Total notes payable $ 666,094 $ 538,398 Capitalized Interest Interest activity, including other financing costs, for notes payable for the periods presented is as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Interest incurred $ 6,091 $ 8,885 $ 21,863 $ 28,303 Less: Amounts capitalized (6,091) (8,885) (21,863) (28,303) Interest expense $ — $ — $ — $ — Cash paid for interest $ 11,772 $ 13,122 $ 26,264 $ 31,822 Included in interest incurred was amortization of deferred financing costs and discounts for notes payable of $0.8 million for each of the three months ended September 30, 2021 and 2020, and $2.2 million for each of the nine months ended September 30, 2021 and 2020.

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2021
Income Tax Disclosure [Abstract]
Income Tax Disclosures	INCOME TAXES We file U.S. and state income tax returns in jurisdictions with varying statutes of limitations. The statute of limitations with regards to our federal income tax filings is three years. The statute of limitations for our state tax jurisdictions is three to four years depending on the jurisdiction. In the normal course of business, we are subject to tax audits in various jurisdictions, and such jurisdictions may assess additional income taxes. We do not expect the outcome of any audit to have a material effect on our consolidated financial statements; however, audit outcomes and the timing of audit adjustments are subject to significant uncertainty. For the three and nine months ended September 30, 2021, our effective tax rates of 20.8% and 20.3%, respectively, are lower than the Federal statutory rate primarily as a result of the federal energy efficient homes tax credit and excess compensation cost for share-based payments, partially offset by an increase in the rate for state income taxes, net of the federal benefit payments.

Equity

Equity	9 Months Ended
	Sep. 30, 2021
Equity [Abstract]
Equity Disclosures	EQUITY Stock Repurchase Program In November 2018, we announced that our Board of Directors (the “Board”) authorized a stock repurchase program, pursuant to which we may purchase up to $50.0 million of shares of our common stock through open market transactions, privately negotiated transactions or otherwise in accordance with applicable laws. In October 2020, the Board approved an increase in our stock repurchase program by an additional $300.0 million. During the three months ended September 30, 2021, we repurchased 358,817 shares of our common stock for $56.1 million to be held as treasury stock. During the nine months

Earnings Per Share

Earnings Per Share	9 Months Ended
	Sep. 30, 2021
Earnings Per Share [Abstract]
Earnings Per Share Disclosures	EARNINGS PER SHARE The following table sets forth the computation of basic and diluted earnings per share for the three and nine months ended September 30, 2021 and 2020: Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Numerator (in thousands): Net income (Numerator for basic and dilutive earnings per share) $ 100,550 $ 89,004 $ 318,342 $ 187,467 Denominator: Basic weighted average shares outstanding 24,508,134 25,089,424 24,766,260 25,162,162 Effect of dilutive securities: Stock-based compensation units 316,186 167,629 263,901 166,393 Diluted weighted average shares outstanding 24,824,320 25,257,053 25,030,161 25,328,555 Basic earnings per share $ 4.10 $ 3.55 $ 12.85 $ 7.45 Diluted earnings per share $ 4.05 $ 3.52 $ 12.72 $ 7.40 Antidilutive non-vested restricted stock units excluded from calculation of diluted earnings per share 553 131 3,629 1,561

Stock-Based Compensation

Stock-Based Compensation	9 Months Ended
	Sep. 30, 2021
Share-based Payment Arrangement [Abstract]
Stock-Based Compensation Disclosures	STOCK-BASED COMPENSATION Non-performance Based Restricted Stock Units The following table summarizes the activity of our time-vested restricted stock units (“RSUs”): Nine Months Ended September 30, 2021 2020 Shares Weighted Average Grant Date Fair Value Shares Weighted Average Grant Date Fair Value Beginning balance 142,738 $ 62.54 162,686 $ 50.84 Granted 25,124 $ 141.96 48,926 $ 61.25 Vested (35,503) $ 63.23 (55,259) $ 32.51 Forfeited (6,205) $ 73.62 (3,000) $ 56.74 Ending balance 126,154 $ 77.61 153,353 $ 60.65 We recognized $0.8 million and $0.9 million of stock-based compensation expense related to outstanding RSUs for each of the three months ended September 30, 2021 and 2020, respectively. We recognized $2.5 million and $2.6 million of stock-based compensation expense related to outstanding RSUs for each of the nine months ended September 30, 2021 and 2020, respectively. Generally, the RSUs cliff vest on the third anniversary of the grant date and can only be settled in shares of our common stock. At September 30, 2021, we had unrecognized compensation cost of $4.5 million related to unvested RSUs, which is expected to be recognized over a weighted average period of 2.0 years. Performance-Based Restricted Stock Units The Compensation Committee of the Board has granted awards of performance-based RSUs (“PSUs”) under the Amended and Restated LGI Homes, Inc. 2013 Equity Incentive Plan to certain members of senior management based on three-year performance cycles. The PSUs provide for shares of our common stock to be issued based on the attainment of certain performance metrics over the applicable three-year periods. The number of shares of our common stock that may be issued to the recipients for the PSUs range from 0% to 200% of the target amount depending on actual results as compared to the target performance metrics. The terms of the PSUs provide that the payouts will be capped at 100% of the target number of PSUs granted if absolute total stockholder return is negative during the performance period, regardless of EPS performance; this market condition applies for amounts recorded above target. The compensation expense associated with the PSU grants is determined using the derived grant date fair value, based on a third-party valuation analysis, and expensed over the applicable period. The PSUs vest upon the determination date for the actual results at the end of the three-year period and require that the recipients continue to be employed by us through the determination date. The PSUs can only be settled in shares of our common stock. The following table summarizes the activity of our PSUs for the nine months ended September 30, 2021: Period Granted Performance Period Target PSUs Outstanding at December 31, 2020 Target PSUs Granted Target PSUs Vested Target PSUs Forfeited Target PSUs Outstanding at September 30, 2021 Weighted Average Grant Date Fair Value 2018 2018 - 2020 60,040 — (60,040) — — $ 64.60 2019 2019 - 2021 81,242 — — — 81,242 $ 56.49 2020 2020 - 2022 88,538 — — — 88,538 $ 59.81 2021 2021 - 2023 — 46,027 — — 46,027 $ 141.00 Total 229,820 46,027 (60,040) — 215,807 At September 30, 2021, management estimates that the recipients will receive approximately 185%, 200% and 200% of the 2021, 2020 and 2019 target number of PSUs, respectively, at the end of the applicable three-year performance cycle based on projected performance compared to the target performance metrics. We recognized $2.3 million and $1.3 million of total stock-based compensation expense related to outstanding PSUs for the three months ended September 30, 2021 and 2020, respectively. We recognized $6.7 million and $3.7 million of total stock-based compensation expense related to outstanding PSUs for the nine months ended September 30, 2021 and 2020, respectively. The 2018 - 2020 performance period PSUs vested

Fair Value Disclosures

Fair Value Disclosures	9 Months Ended
	Sep. 30, 2021
Fair Value Disclosures [Abstract]
Fair Value Disclosures	FAIR VALUE DISCLOSURES ASC Topic 820, Fair Value Measurements (“ASC 820”) , defines fair value as “the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date” within an entity’s principal market, if any. The principal market is the market in which the reporting entity would sell the asset or transfer the liability with the greatest volume and level of activity, regardless of whether it is the market in which the entity will ultimately transact for a particular asset or liability or if a different market is potentially more advantageous. Accordingly, this exit price concept may result in a fair value that differs from the transaction price or market price of the asset or liability. ASC 820 provides a framework for measuring fair value under GAAP, expands disclosures about fair value measurements and establishes a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The three levels of the fair value hierarchy are summarized as follows: Level 1 - Fair value is based on quoted prices in active markets for identical assets or liabilities. Level 2 - Fair value is determined using significant observable inputs, generally either quoted prices in active markets for similar assets or liabilities, or quoted prices in markets that are not active. Level 3 - Fair value is determined using one or more significant inputs that are unobservable in active markets at the measurement date, such as a pricing model, discounted cash flow or similar technique. We utilize fair value measurements to account for certain items and account balances within our consolidated financial statements. Fair value measurements may also be utilized on a nonrecurring basis, such as for the impairment of long-lived assets. The fair value of financial instruments, including cash and cash equivalents, accounts receivable, accounts payable and certain accrued liabilities approximate their carrying amounts due to the short-term nature of these instruments. As of September 30, 2021, the Credit Agreement’s carrying value approximates market value since it has a floating interest rate, which increases or decreases with market interest rates and our leverage ratio. In order to determine the fair value of the 2029 Senior Notes and the 2026 Senior Notes, the future contractual cash flows are discounted at our estimate of current market rates of interest, which were determined based upon the average interest rates of similar senior notes within the homebuilding industry (Level 2 measurement). The following table below shows the level and measurement of liabilities at September 30, 2021 and December 31, 2020 (in thousands): September 30, 2021 December 31, 2020 Fair Value Hierarchy Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value 2029 Senior Notes (1) Level 2 $ 300,000 $ 300,920 $ — $ — 2026 Senior Notes (2) Level 2 $ — $ — $ 300,000 $ 340,388 (1) On June 28, 2021, we completed an offering of $300.0 million aggregate principal amount of the 2029 Senior Notes. See Note 5 for more details regarding this offering. (2) On July 15, 2021, we redeemed all of the outstanding 2026 Senior Notes. See Note 5 for more details regarding the redemption.

Related Party Transactions

Related Party Transactions	9 Months Ended
	Sep. 30, 2021
Related Party Transactions [Abstract]
Related Party Transactions Disclosures	RELATED PARTY TRANSACTIONS Land Purchases from Affiliates We did not complete any land purchase contracts with affiliates during the three months ended September 30, 2021. During the nine months ended September 30, 2021, we completed a land purchase contract to purchase a total of 110 finished lots in Pasco County, Florida from an affiliate of one of our directors for a total base purchase price of approximately $4.0 million. The lots were purchased in takedowns, subject to a maximum price escalation of 6% per annum, and may provide for additional payments to the seller at the time of sale to the homebuyer. In August 2019, we purchased our first takedown of 58 lots under the Pasco County contract for a base purchase price of approximately $2.1 million. In April 2021, we purchased the remaining land in a takedown of 52 lots under the Pasco County contract for a base purchase price of approximately $1.9 million. During the nine months ended September 30, 2021, we completed a land purchase contract to purchase a total of 25 finished lots in Burnet County, Texas from an affiliate of a family member of our chief executive officer for a total base purchase price of approximately $2.5 million.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2021
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies Disclosures	COMMITMENTS AND CONTINGENCIES Contingencies In the ordinary course of doing business, we are subject to claims or proceedings from time to time relating to the purchase, development and sale of real estate and homes and other aspects of our homebuilding operations. Management believes that these claims include usual obligations incurred by real estate developers and residential home builders in the normal course of business. In the opinion of management, these matters will not have a material effect on our consolidated financial position, results of operations or cash flows. We have provided unsecured environmental indemnities to certain lenders and other counterparties. In each case, we have performed due diligence on the potential environmental risks including obtaining an independent environmental review from outside environmental consultants. These indemnities obligate us to reimburse the guaranteed parties for damages related to environmental matters. There is no term or damage limitation on these indemnities; however, if an environmental matter arises, we may have recourse against other previous owners. In the ordinary course of doing business, we are subject to regulatory proceedings from time to time related to environmental and other matters. In the opinion of management, these matters will not have a material effect on our consolidated financial position, results of operations or cash flows. Land Deposits We have land purchase contracts, generally through cash deposits, for the right to purchase land or lots at a future point in time with predetermined terms. We do not have title to the property, and obligations with respect to the land purchase contracts are generally limited to the forfeiture of the related nonrefundable cash deposits. The following is a summary of our land purchase deposits included in pre-acquisition costs and deposits (in thousands, except for lot count): September 30, 2021 December 31, 2020 Land deposits and option payments $ 46,324 $ 34,097 Commitments under the land purchase contracts if the purchases are consummated $ 1,047,124 $ 663,006 Lots under land purchase contracts 43,338 26,236 As of September 30, 2021 and December 31, 2020, approximately $25.1 million and $24.0 million, respectively, of the land deposits are related to purchase contracts to deliver finished lots that are refundable under certain circumstances, such as feasibility or specific performance, and secured by mortgages or letters of credit or guaranteed by the seller or its affiliates. Lease Obligations We recognize lease obligations and associated right-of-use (“ROU”) assets for our existing non-cancelable leases. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. We have non-cancelable operating leases primarily associated with our corporate and regional office facilities. Operating lease expense is recognized on a straight-line basis over the lease term, subject to any changes in the lease or expectations regarding the terms. Variable lease costs such as common area costs and property taxes are expensed as incurred. Leases with an initial term of 12 months or less are not recorded on the balance sheet. The lease term may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. As our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. ROU assets, as included in other assets on the consolidated balance sheets, were $4.6 million and $4.9 million at September 30, 2021 and December 31, 2020, respectively. Lease obligations, as included in accrued expenses and other liabilities on the consolidated balance sheets, were $4.8 million and $5.3 million at September 30, 2021 and December 31, 2020, respectively. Operating lease cost, as included in general and administrative expense in our consolidated statements of operations, was $0.5 million and $0.4 million for the three months ended September 30, 2021 and 2020, respectively. Operating lease cost, as included in general and administrative expense in our consolidated statements of operations, was $1.3 million and $1.2 million for the nine months ended September 30, 2021 and 2020, respectively. Cash paid for amounts included in the measurement of lease liabilities for operating leases during the nine months ended September 30, 2021 and 2020 was $1.2 million and $0.7 million, respectively. As of September 30, 2021, the weighted-average discount rate was 5.20% and our weighted-average remaining life was 4.3 years. We do not have any significant lease contracts that have not yet commenced at September 30, 2021. The table below shows the future minimum payments under non-cancelable operating leases at September 30, 2021 (in thousands): Year Ending December 31, Operating leases 2021 $ 346 2022 1,218 2023 1,061 2024 818 2025 698 Thereafter 1,664 Total 5,805 Lease amount representing interest (961) Present value of lease liabilities $ 4,844 Bonding and Letters of Credit We have outstanding letters of credit and performance and surety bonds totaling $199.7 million (including $8.3 million of letters of credit issued under the Credit Agreement) and $143.8 million at September 30, 2021 and December 31, 2020, respectively, related to our obligations for site improvements at various projects. Management does not believe that draws upon the letters of credit, surety bonds or financial guarantees if any, will have a material effect on our consolidated financial position, results of operations or cash flows. Investment in Unconsolidated Entities two

Segment Information

Segment Information	9 Months Ended
	Sep. 30, 2021
Segment Reporting [Abstract]
Segment Information Disclosures	SEGMENT INFORMATION We operate one principal homebuilding business that is organized and reports by division. We have seven operating segments (our Central, Midwest, Southeast, Mid-Atlantic, Northwest, West, and Florida divisions) that we aggregate into five qualifying reportable segments at September 30, 2021: our Central, Southeast, Northwest, West, and Florida divisions. These segments reflect the way the Company evaluates its business performance and manages its operations. The Central division is our largest division and comprised approximately 41.1% and 35.4% of total home sales revenues for the nine months ended September 30, 2021 and 2020, respectively. In accordance with ASC 280, Segment Reporting , operating segments are defined as components of an enterprise for which separate financial information is available that is evaluated regularly by the chief operating decision-makers (“CODMs”) in deciding how to allocate resources and in assessing performance. The CODMs primarily evaluate performance based on the number of homes closed, gross margin and average sales price per home closed. In determining the most appropriate reportable segments, we consider operating segments’ economic and other characteristics, including home floor plans, average selling prices, gross margin percentage, geographical proximity, production construction processes, suppliers, subcontractors, regulatory environments, customer type and underlying demand and supply. Each operating segment follows the same accounting policies and is managed by our management team. We have no inter-segment sales, as all sales are to external customers. Operating results for each segment may not be indicative of the results for such segment had it been an independent, stand-alone entity for the periods presented. Financial information relating to our reportable segments was as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Revenues: Central $ 287,878 $ 186,909 $ 924,591 $ 520,608 Southeast 146,166 130,131 442,431 347,155 Northwest 148,515 91,138 372,903 249,455 West 90,592 62,935 252,553 182,012 Florida 78,457 63,089 256,595 171,301 Total home sales revenues $ 751,608 $ 534,202 $ 2,249,073 $ 1,470,531 Net income (loss) before income taxes: Central $ 55,793 $ 32,845 $ 180,467 $ 86,694 Southeast 27,142 17,280 77,644 42,063 Northwest 34,124 15,940 83,773 40,945 West 13,279 6,883 38,598 19,101 Florida 11,937 6,608 37,518 17,001 Corporate (1) (15,281) (1,741) (18,609) (4,503) Total net income before income taxes $ 126,994 $ 77,815 $ 399,391 $ 201,301 (1) The Corporate balance consists primarily of general and administration unallocated costs for various shared service functions, as well as our warranty reserve and loss on extinguishment of debt. Actual warranty expenses are reflected within the reportable segments. September 30, 2021 December 31, 2020 Assets: Central $ 808,278 $ 708,087 Southeast 410,024 401,725 Northwest 317,866 252,098 West 335,046 228,186 Florida 193,009 157,169 Corporate (1) 89,334 78,822 Total assets $ 2,153,557 $ 1,826,087

Revenues (Tables)

Revenues (Tables)	9 Months Ended
	Sep. 30, 2021
Disaggregation of Revenue [Line Items]
Revenue from External Customers by Products	The following table presents our home sales revenues disaggregated by revenue stream (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Retail home sales revenues $ 650,041 $ 515,221 $ 1,990,439 $ 1,369,130 Wholesale home sales revenues 101,567 18,981 258,634 101,401 Total home sales revenues $ 751,608 $ 534,202 $ 2,249,073 $ 1,470,531
Revenue from External Customers by Geographic Areas	The following table presents our home sales revenues disaggregated by geography, based on our determined reportable segments in Note 13 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Central $ 287,878 $ 186,909 $ 924,591 $ 520,608 Southeast 146,166 130,131 442,431 347,155 Northwest 148,515 91,138 372,903 249,455 West 90,592 62,935 252,553 182,012 Florida 78,457 63,089 256,595 171,301 Total home sales revenues $ 751,608 $ 534,202 $ 2,249,073 $ 1,470,531

Real Estate Inventory (Tables)

Real Estate Inventory (Tables)	9 Months Ended
	Sep. 30, 2021
Inventory Disclosure [Abstract]
Schedule of Real Estate Inventory	Our real estate inventory consists of the following (in thousands): September 30, December 31, 2021 2020 Land, land under development and finished lots $ 1,211,693 $ 981,838 Information centers 27,427 30,201 Homes in progress 581,348 337,364 Completed homes 87,667 220,086 Total real estate inventory $ 1,908,135 $ 1,569,489

Accrued Expenses and Other Li_2

Accrued Expenses and Other Liabilities (Tables)	9 Months Ended
	Sep. 30, 2021
Payables and Accruals [Abstract]
Accrued and Other Current Liabilities	Accrued and other liabilities consist of the following (in thousands): September 30, December 31, 2021 2020 Taxes payable $ 7,818 $ 26,181 Real estate inventory development and construction payable 42,048 29,938 Accrued compensation, bonuses and benefits 19,105 28,579 Accrued interest 4,263 10,853 Inventory related obligations 6,331 4,515 Lease liability 4,844 5,287 Warranty reserve 7,150 5,350 Contract deposits 16,122 17,151 Other 8,553 7,154 Total accrued expenses and other liabilities $ 116,234 $ 135,008
Changes in Company's Warranty Accrual	Changes to our warranty accrual are as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Warranty reserves, beginning of period $ 6,550 $ 3,950 $ 5,350 $ 3,500 Warranty provision 2,424 1,284 8,409 4,108 Warranty expenditures (1,824) (1,084) (6,609) (3,458) Warranty reserves, end of period $ 7,150 $ 4,150 $ 7,150 $ 4,150

Notes Payable (Tables)

Notes Payable (Tables)	9 Months Ended
	Sep. 30, 2021
Debt Disclosure [Abstract]
Schedule of Notes Payable	Notes payable consist of the following (in thousands): September 30, 2021 December 31, 2020 Notes payable under the Credit Agreement ($850.0 million revolving credit facility at September 30, 2021) maturing on April 28, 2025; interest paid monthly at LIBOR plus 1.45%. $ 379,041 $ 246,621 4.000% Senior Notes due July 15, 2029; interest paid semi-annually at 4.000%. 300,000 — 6.875% Senior Notes due July 15, 2026; interest paid semi-annually at 6.875%. — 300,000 Net discount and debt issuance costs (12,947) (8,223) Total notes payable $ 666,094 $ 538,398
Schedule of Interest Activity for Notes Payable	Interest activity, including other financing costs, for notes payable for the periods presented is as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Interest incurred $ 6,091 $ 8,885 $ 21,863 $ 28,303 Less: Amounts capitalized (6,091) (8,885) (21,863) (28,303) Interest expense $ — $ — $ — $ — Cash paid for interest $ 11,772 $ 13,122 $ 26,264 $ 31,822

Earnings Per Share (Tables)

Earnings Per Share (Tables)	9 Months Ended
	Sep. 30, 2021
Earnings Per Share [Abstract]
Schedule of Earnings Per Share, Basic and Diluted	The following table sets forth the computation of basic and diluted earnings per share for the three and nine months ended September 30, 2021 and 2020: Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Numerator (in thousands): Net income (Numerator for basic and dilutive earnings per share) $ 100,550 $ 89,004 $ 318,342 $ 187,467 Denominator: Basic weighted average shares outstanding 24,508,134 25,089,424 24,766,260 25,162,162 Effect of dilutive securities: Stock-based compensation units 316,186 167,629 263,901 166,393 Diluted weighted average shares outstanding 24,824,320 25,257,053 25,030,161 25,328,555 Basic earnings per share $ 4.10 $ 3.55 $ 12.85 $ 7.45 Diluted earnings per share $ 4.05 $ 3.52 $ 12.72 $ 7.40 Antidilutive non-vested restricted stock units excluded from calculation of diluted earnings per share 553 131 3,629 1,561

Stock-based Compensation (Table

Stock-based Compensation (Tables)	9 Months Ended
	Sep. 30, 2021
Share-based Payment Arrangement [Abstract]
Schedule of Restricted Stock Unit Activity	The following table summarizes the activity of our time-vested restricted stock units (“RSUs”): Nine Months Ended September 30, 2021 2020 Shares Weighted Average Grant Date Fair Value Shares Weighted Average Grant Date Fair Value Beginning balance 142,738 $ 62.54 162,686 $ 50.84 Granted 25,124 $ 141.96 48,926 $ 61.25 Vested (35,503) $ 63.23 (55,259) $ 32.51 Forfeited (6,205) $ 73.62 (3,000) $ 56.74 Ending balance 126,154 $ 77.61 153,353 $ 60.65
Schedule of Performance Based Stock Activity	The following table summarizes the activity of our PSUs for the nine months ended September 30, 2021: Period Granted Performance Period Target PSUs Outstanding at December 31, 2020 Target PSUs Granted Target PSUs Vested Target PSUs Forfeited Target PSUs Outstanding at September 30, 2021 Weighted Average Grant Date Fair Value 2018 2018 - 2020 60,040 — (60,040) — — $ 64.60 2019 2019 - 2021 81,242 — — — 81,242 $ 56.49 2020 2020 - 2022 88,538 — — — 88,538 $ 59.81 2021 2021 - 2023 — 46,027 — — 46,027 $ 141.00 Total 229,820 46,027 (60,040) — 215,807

Fair Value Disclosures (Tables)

Fair Value Disclosures (Tables)	9 Months Ended
	Sep. 30, 2021
Fair Value Disclosures [Abstract]
Fair Value Measurements	The following table below shows the level and measurement of liabilities at September 30, 2021 and December 31, 2020 (in thousands): September 30, 2021 December 31, 2020 Fair Value Hierarchy Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value 2029 Senior Notes (1) Level 2 $ 300,000 $ 300,920 $ — $ — 2026 Senior Notes (2) Level 2 $ — $ — $ 300,000 $ 340,388 (1) On June 28, 2021, we completed an offering of $300.0 million aggregate principal amount of the 2029 Senior Notes. See Note 5 for more details regarding this offering. (2) On July 15, 2021, we redeemed all of the outstanding 2026 Senior Notes. See Note 5 for more details regarding the redemption.

Commitments and Contingencies (

Commitments and Contingencies (Tables)	9 Months Ended
	Sep. 30, 2021
Commitments and Contingencies Disclosure [Abstract]
Lessee, Operating Lease, Liability, Maturity	The table below shows the future minimum payments under non-cancelable operating leases at September 30, 2021 (in thousands): Year Ending December 31, Operating leases 2021 $ 346 2022 1,218 2023 1,061 2024 818 2025 698 Thereafter 1,664 Total 5,805 Lease amount representing interest (961) Present value of lease liabilities $ 4,844
Summary of Lots Under Option or Contract	The following is a summary of our land purchase deposits included in pre-acquisition costs and deposits (in thousands, except for lot count): September 30, 2021 December 31, 2020 Land deposits and option payments $ 46,324 $ 34,097 Commitments under the land purchase contracts if the purchases are consummated $ 1,047,124 $ 663,006 Lots under land purchase contracts 43,338 26,236

Segment (Tables)

Segment (Tables)	9 Months Ended
	Sep. 30, 2021
Segment Reporting Information [Line Items]
Schedule of Segment Reporting Information, by Segment	Financial information relating to our reportable segments was as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Revenues: Central $ 287,878 $ 186,909 $ 924,591 $ 520,608 Southeast 146,166 130,131 442,431 347,155 Northwest 148,515 91,138 372,903 249,455 West 90,592 62,935 252,553 182,012 Florida 78,457 63,089 256,595 171,301 Total home sales revenues $ 751,608 $ 534,202 $ 2,249,073 $ 1,470,531 Net income (loss) before income taxes: Central $ 55,793 $ 32,845 $ 180,467 $ 86,694 Southeast 27,142 17,280 77,644 42,063 Northwest 34,124 15,940 83,773 40,945 West 13,279 6,883 38,598 19,101 Florida 11,937 6,608 37,518 17,001 Corporate (1) (15,281) (1,741) (18,609) (4,503) Total net income before income taxes $ 126,994 $ 77,815 $ 399,391 $ 201,301 (1) The Corporate balance consists primarily of general and administration unallocated costs for various shared service functions, as well as our warranty reserve and loss on extinguishment of debt. Actual warranty expenses are reflected within the reportable segments. September 30, 2021 December 31, 2020 Assets: Central $ 808,278 $ 708,087 Southeast 410,024 401,725 Northwest 317,866 252,098 West 335,046 228,186 Florida 193,009 157,169 Corporate (1) 89,334 78,822 Total assets $ 2,153,557 $ 1,826,087

Revenues (Details)

Revenues (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Disaggregation of Revenue [Line Items]
Home sales revenues	$ 751,608	$ 534,202	$ 2,249,073	$ 1,470,531
Retail
Disaggregation of Revenue [Line Items]
Home sales revenues	650,041	515,221	1,990,439	1,369,130
Wholesale
Disaggregation of Revenue [Line Items]
Home sales revenues	101,567	18,981	258,634	101,401
Central
Disaggregation of Revenue [Line Items]
Home sales revenues	287,878	186,909	924,591	520,608
Southeast
Disaggregation of Revenue [Line Items]
Home sales revenues	146,166	130,131	442,431	347,155
Northwest
Disaggregation of Revenue [Line Items]
Home sales revenues	148,515	91,138	372,903	249,455
West
Disaggregation of Revenue [Line Items]
Home sales revenues	90,592	62,935	252,553	182,012
Florida
Disaggregation of Revenue [Line Items]
Home sales revenues	$ 78,457	$ 63,089	$ 256,595	$ 171,301

Schedule of Real Estate Invento

Schedule of Real Estate Inventory (Details) $ in Thousands	Jul. 14, 2021USD ($)home	May 06, 2021USD ($)home	Sep. 30, 2021USD ($)	Dec. 31, 2020USD ($)
Inventory [Line Items]
Land, land under development and finished lots			$ 1,211,693	$ 981,838
Information centers			27,427	30,201
Homes in progress			581,348	337,364
Completed homes			87,667	220,086
Total real estate inventory			$ 1,908,135	$ 1,569,489
Homes acquired, under construction | home	100	100
Lots acquired, owned and controlled | home	500	3,000
Asset acquisition, consideration transferred	$ 39,100	$ 27,300
Minimum
Inventory [Line Items]
Community life cycle			2 years
Maximum
Inventory [Line Items]
Community life cycle			5 years

Accrued Expenses and Other Li_3

Accrued Expenses and Other Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Jun. 30, 2021	Dec. 31, 2020	Sep. 30, 2020	Jun. 30, 2020	Dec. 31, 2019
Payables and Accruals [Abstract]
Taxes payable	$ 7,818		$ 26,181
Real estate inventory development and construction payable	42,048		29,938
Accrued compensation, bonuses and benefits	19,105		28,579
Accrued interest	4,263		10,853
Inventory related obligations	6,331		4,515
Operating Lease, Liability	4,844		5,287
Warranty reserve	7,150	$ 6,550	5,350	$ 4,150	$ 3,950	$ 3,500
Contract deposits	16,122		17,151
Other	8,553		7,154
Total accrued expenses and other liabilities	$ 116,234		$ 135,008

Accrued Expenses and Other Li_4

Accrued Expenses and Other Liabilities - Narrative (Details)	9 Months Ended
	Sep. 30, 2021
Product Warranty Liability [Line Items]
Inventory related obligation term	30 years
Other Construction Components
Product Warranty Liability [Line Items]
Limited warranty period	1 year
Structural Elements
Product Warranty Liability [Line Items]
Limited warranty period	10 years

Changes in Warranty Reserve (De

Changes in Warranty Reserve (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Product Warranty, Increase (Decrease) [Roll Forward]
Warranty reserves, beginning of period	$ 6,550	$ 3,950	$ 5,350	$ 3,500
Warranty provision	2,424	1,284	8,409	4,108
Warranty expenditures	(1,824)	(1,084)	(6,609)	(3,458)
Warranty reserves, end of period	$ 7,150	$ 4,150	$ 7,150	$ 4,150
Other Construction Components
Product Warranty Liability [Line Items]
Limited warranty period			1 year
Structural Elements
Product Warranty Liability [Line Items]
Limited warranty period			10 years

Notes Payable - Revolving Credi

Notes Payable - Revolving Credit Agreement (Details) - Fifth Amended and Restated Credit Agreement - USD ($)	Apr. 28, 2021	Sep. 30, 2021
Line of Credit Facility [Line Items]
Line of credit facility	$ 850,000,000
Line of credit facility, current borrowing capacity		$ 1,100,000,000
Line of credit facility, additional borrowing capacity	100,000,000
Line of credit, amount outstanding		679,000,000
Letters of credit outstanding		8,300,000
Line of credit facility, remaining borrowing capacity		$ 459,600,000
Letters of credit, sublimit maximum	50,000,000
Letters of credit, borrowing base	10,000,000
Letters of credit, net worth requirement	$ 850,000,000
Letters of credit, net worth requirement, percent of equity issuance	75.00%
Letters of credit, net worth requirement, percent of consolidated earnings each quarter	50.00%
LIBOR
Line of Credit Facility [Line Items]
Base spread on variable rate	1.45%	0.08%
Variable interest rate	0.50%	0.50%
Minimum
Line of Credit Facility [Line Items]
Base spread on variable rate	1.45%
Maximum
Line of Credit Facility [Line Items]
Base spread on variable rate	2.10%

Notes Payable - Schedule of Not

Notes Payable - Schedule of Notes Payable (Details) - USD ($)	9 Months Ended
	Sep. 30, 2021	Dec. 31, 2020
Debt Instrument [Line Items]
Notes payable	$ 666,094,000	$ 538,398,000
Net discount and debt issuance costs	$ (12,947,000)	(8,223,000)
LIBOR
Debt Instrument [Line Items]
Interest rate	1.45%
Revolving Credit Facility
Debt Instrument [Line Items]
Notes payable	$ 379,041,000	246,621,000
Line of credit facility	850,000,000
4.000% Senior Notes Due 2029 | Senior Notes
Debt Instrument [Line Items]
Notes payable	$ 300,000,000	0
Interest rate	4.00%
6.875% Senior Notes Due 2026 | Senior Notes
Debt Instrument [Line Items]
Notes payable	$ 0	$ 300,000,000
Interest rate	6.875%

Notes Payable - Senior Notes (D

Notes Payable - Senior Notes (Details) - USD ($)	Jul. 15, 2021	Sep. 30, 2021	Sep. 30, 2020
Debt Instrument [Line Items]
Redemption Premium		$ 10,314,000	$ 0
4.000% Senior Notes Due 2029 | Senior Notes
Debt Instrument [Line Items]
Senior Notes, Gross		$ 300,000,000
Stated interest rate on note		4.00%
6.875% Senior Notes Due 2026 | Senior Notes
Debt Instrument [Line Items]
Senior Notes, Gross		$ 300,000,000
Stated interest rate on note		6.875%
Principal payment of debt	$ 300,000,000
Redemption Premium	10,300,000
Financing expenses	$ 3,000,000

Notes Payable - Capitalized Int

Notes Payable - Capitalized Interest (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Debt Disclosure [Abstract]
Interest incurred	$ 6,091	$ 8,885	$ 21,863	$ 28,303
Less: Amounts capitalized	(6,091)	(8,885)	(21,863)	(28,303)
Interest expense	0	0	0	0
Cash paid for interest	11,772	13,122	26,264	31,822
Net discount and debt issuance costs	$ 800	$ 800	$ 2,200	$ 2,200

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Income Tax Disclosure [Abstract]
Effective income tax rate reconciliation, percent	20.80%		20.30%
Income taxes paid	$ 36	$ 46.6	$ 99.7	$ 65.5

Equity (Details)

Equity (Details) - USD ($)	3 Months Ended				9 Months Ended		35 Months Ended
	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Mar. 31, 2020	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Oct. 30, 2020	Nov. 30, 2018
Equity [Abstract]
Stock Repurchase Program, Authorized Amount									$ 50,000,000
Stock Repurchase Program, Additional Authorized Repurchase Amount								$ 300,000,000
Stock Repurchased During Period, Shares	358,817				910,038		1,668,031
Stock Repurchased During Period, Value	$ 56,083,000	$ 55,776,000	$ 25,827,000	$ 31,335,000
Payments for Repurchase of Common Stock					$ (137,686,000)	$ (31,335,000)
Stock Repurchase Program, Remaining Authorized Repurchase Amount	$ 162,700,000				$ 162,700,000		$ 162,700,000

Earnings Per Share (Details)

Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended						9 Months Ended
	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Sep. 30, 2021	Sep. 30, 2020
Earnings Per Share [Abstract]
Net income	$ 100,550	$ 118,134	$ 99,658	$ 89,004	$ 55,624	$ 42,839	$ 318,342	$ 187,467
Basic weighted average shares outstanding	24,508,134			25,089,424			24,766,260	25,162,162
Stock-based compensation units	316,186			167,629			263,901	166,393
Diluted weighted average shares outstanding	24,824,320			25,257,053			25,030,161	25,328,555
Basic earnings per share (in dollars per share)	$ 4.10			$ 3.55			$ 12.85	$ 7.45
Diluted earnings per share (in dollars per share)	$ 4.05			$ 3.52			$ 12.72	$ 7.40
Antidilutive non-vested restricted stock units excluded from calculation of diluted earnings per share	553			131			3,629	1,561

Summary of Non-Perfomance Based

Summary of Non-Perfomance Based Restricted Stock Units (Details) - Restricted stock units (RSUs) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Share-based Compensation Arrangement by Award [Abstract]
Balance at Beginning of Period (in shares)			142,738	162,686
Granted (in shares)			25,124	48,926
Vested (in shares)			(35,503)	(55,259)
Forfeited (in shares)			(6,205)	(3,000)
Balance at End of Period (in shares)	126,154	153,353	126,154	153,353
Share-based Compensation Arrangement by Award, Fair Value [Abstract]
Shares outstanding at the beginning of the period, weighted average grant date fair value (in dollars per share)			$ 62.54	$ 50.84
Granted, weighted average grant date fair value (in dollars per share)			141.96	61.25
Vested, weighted average grant date fair value (in dollars per share)			63.23	32.51
Forfeited, weighted average grant date fair value (in dollars per share)			73.62	56.74
Shares outstanding at the end of the period, weighted average grant date fair value (in dollars per share)	$ 77.61	$ 60.65	$ 77.61	$ 60.65
Share-based compensation expense	$ 0.8	$ 0.9	$ 2.5	$ 2.6
Share-based compensation not yet recognized	$ 4.5		$ 4.5
Share-based compensation not yet recognized, period for recognition			2 years

Summary of Performance Based Re

Summary of Performance Based Restricted Stock Units (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Share-based Compensation Arrangement by Award [Line Items]
Percentage of total units vested			100.00%
Performance Based Shares
Share-based Compensation Arrangement by Award [Line Items]
Performance vesting period			3 years
Balance at Beginning of Period (in shares)			229,820
Granted (in shares)			46,027
Vested (in shares)			(60,040)
Forfeited (in shares)			0
Balance at End of Period (in shares)	215,807		215,807
Share-based compensation expense	$ 2.3	$ 1.3	$ 6.7	$ 3.7
Share-based compensation not yet recognized	$ 13.8		$ 13.8
Share-based compensation not yet recognized, period for recognition			2 years
2018 Grant | Performance Based Shares
Share-based Compensation Arrangement by Award [Line Items]
Percentage of total units vested			200.00%
Balance at Beginning of Period (in shares)			60,040
Vested (in shares)			(60,040)
Balance at End of Period (in shares)	0		0
Weighted average grant date fair value (in dollars per share)	$ 64.60		$ 64.60
2019 Grant | Performance Based Shares
Share-based Compensation Arrangement by Award [Line Items]
Percentage of total units vested			200.00%
Balance at Beginning of Period (in shares)			81,242
Balance at End of Period (in shares)	81,242		81,242
Weighted average grant date fair value (in dollars per share)	$ 56.49		$ 56.49
2020 Grant | Performance Based Shares
Share-based Compensation Arrangement by Award [Line Items]
Percentage of total units vested			200.00%
Balance at Beginning of Period (in shares)			88,538
Balance at End of Period (in shares)	88,538		88,538
Weighted average grant date fair value (in dollars per share)	$ 59.81		$ 59.81
2021 Grant | Performance Based Shares
Share-based Compensation Arrangement by Award [Line Items]
Percentage of total units vested			185.00%
Granted (in shares)			46,027
Balance at End of Period (in shares)	46,027		46,027
Weighted average grant date fair value (in dollars per share)	$ 141		$ 141
Minimum | Performance Based Shares
Share-based Compensation Arrangement by Award [Line Items]
Percentage of total units vested			0.00%
Maximum | Performance Based Shares
Share-based Compensation Arrangement by Award [Line Items]
Percentage of total units vested			200.00%

Fair Value Disclosures (Details

Fair Value Disclosures (Details) - USD ($)	Sep. 30, 2021	Jun. 28, 2021	Dec. 31, 2020
Fair Value Disclosures [Line Items]
Notes payable, carrying value	$ 666,094,000		$ 538,398,000
Senior Note Due Twenty Twenty Nine
Fair Value Disclosures [Line Items]
Notes payable, carrying value			0
Senior notes, fair value	300,920,000		0
Debt Instrument, Face Amount		$ 300,000,000
Senior Note Due Twenty Twenty Six
Fair Value Disclosures [Line Items]
Senior notes, fair value	$ 0		$ 340,388,000

Related Party Transactions (Det

Related Party Transactions (Details) $ in Millions	9 Months Ended
	Sep. 30, 2021USD ($)lot	Apr. 30, 2021USD ($)lot	Dec. 31, 2020	Aug. 31, 2019USD ($)lot
Related Party Transaction [Line Items]
Total lots under option contract to purchase	43,338		26,236
FLORIDA | Affiliated Entity
Related Party Transaction [Line Items]
Total lots under option contract to purchase | lot	110
Total purchase price for lots under option contract | $	$ 4
lgih_PurchasedLotsPreviouslyUnderPurchaseOptions | lot		52		58
lgih_LandunderPurchaseOptionsPurchasePrice | $		$ 1.9		$ 2.1
Central | Affiliated Entity
Related Party Transaction [Line Items]
Total lots under option contract to purchase | lot	25
Total purchase price for lots under option contract | $	$ 2.5
Maximum | FLORIDA | Affiliated Entity
Related Party Transaction [Line Items]
Annual price escalation rate	6.00%

Commitments and Contingencies_2

Commitments and Contingencies (Details) $ in Thousands	3 Months Ended		6 Months Ended	9 Months Ended
	Sep. 30, 2021USD ($)	Sep. 30, 2020USD ($)	Jun. 30, 2021USD ($)	Sep. 30, 2021USD ($)	Sep. 30, 2020USD ($)	Dec. 31, 2020USD ($)
Other Commitments [Line Items]
Land deposits and option payments	$ 46,324			$ 46,324		$ 34,097
Commitments under the land purchase contracts if the purchases are consummated	$ 1,047,124			$ 1,047,124		$ 663,006
Lots under land purchase contracts	43,338			43,338		26,236
Refundable land deposits of purchase contracts of finished lots	$ 25,100			$ 25,100		$ 24,000
Operating Lease, Right-of-Use Asset	4,600			4,600		4,900
Present value of operating lease liabilities	4,844			4,844		5,287
Operating Lease, Cost	$ 500	$ 400		1,300	$ 1,200
Operating Lease, Payments				$ 1,200	$ 700
Operating lease, weighted average discount rate	5.20%			5.20%
Operating lease, weighted average remaining lease term	4 years 3 months 18 days			4 years 3 months 18 days
Letters of credit, surety bonds, and other financials guarantees	$ 199,700			$ 199,700		$ 143,800
Contributions to limited partnership			$ 3,900	5,300
Not Primary Beneficiary
Other Commitments [Line Items]
Limited partnership, maximum commitment	$ 30,000			$ 30,000
Limited partnership, term	8 years
Limited partnership, renewal term	2 years

Commitments and Contingencies F

Commitments and Contingencies Future Minimum Operating Lease Payments (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Commitments and Contingencies Disclosure [Abstract]
2021	$ 346
2022	1,218
2023	1,061
2024	818
2025	698
Thereafter	1,664
Total	5,805
Lease amount representing interest	(961)
Operating Lease, Liability	$ 4,844	$ 5,287

Segment Information (Details)

Segment Information (Details)	3 Months Ended		9 Months Ended
	Sep. 30, 2021USD ($)	Sep. 30, 2020USD ($)	Sep. 30, 2021USD ($)businesshome	Sep. 30, 2020USD ($)	Dec. 31, 2020USD ($)
Segment Reporting Information [Line Items]
Assets	$ 2,153,557,000		$ 2,153,557,000		$ 1,826,087,000
Home sales revenues	751,608,000	$ 534,202,000	$ 2,249,073,000	$ 1,470,531,000
Number of reporting segments | home			5
Number of operating segments | business			7
Net income before income taxes	126,994,000	77,815,000	$ 399,391,000	201,301,000
Central
Segment Reporting Information [Line Items]
Assets	808,278,000		808,278,000		708,087,000
Home sales revenues	287,878,000	186,909,000	924,591,000	520,608,000
Net income before income taxes	55,793,000	32,845,000	180,467,000	86,694,000
Southeast
Segment Reporting Information [Line Items]
Assets	410,024,000		410,024,000		401,725,000
Home sales revenues	146,166,000	130,131,000	442,431,000	347,155,000
Net income before income taxes	27,142,000	17,280,000	77,644,000	42,063,000
Northwest
Segment Reporting Information [Line Items]
Assets	317,866,000		317,866,000		252,098,000
Home sales revenues	148,515,000	91,138,000	372,903,000	249,455,000
Net income before income taxes	34,124,000	15,940,000	83,773,000	40,945,000
West
Segment Reporting Information [Line Items]
Assets	335,046,000		335,046,000		228,186,000
Home sales revenues	90,592,000	62,935,000	252,553,000	182,012,000
Net income before income taxes	13,279,000	6,883,000	38,598,000	19,101,000
Florida
Segment Reporting Information [Line Items]
Assets	193,009,000		193,009,000		157,169,000
Home sales revenues	78,457,000	63,089,000	256,595,000	171,301,000
Net income before income taxes	11,937,000	6,608,000	37,518,000	17,001,000
Corporate
Segment Reporting Information [Line Items]
Assets	89,334,000		89,334,000		$ 78,822,000
Net income before income taxes	$ (15,281,000)	$ (1,741,000)	$ (18,609,000)	$ (4,503,000)
Operating Segments | Central | Geographic Concentration Risk | Revenue Benchmark
Segment Reporting Information [Line Items]
Percentage of operations			41.10%	35.40%
Intersegment Eliminations
Segment Reporting Information [Line Items]
Home sales revenues			$ 0