LGIH · 10-Q · 2026Q1 · Full report

Inflation Impact and Risks

LGI Homes, Inc. · 2026-04-28 · Importance 10 · Surprise 6

The Company identifies inflation as an adverse factor that can increase land, financing, labor, material and construction costs, which directly raises its development and homebuilding cost base. The filing also states higher inflation can lead to elevated mortgage rates, which materially affect buyer affordability and demand for homes. The Company directs readers to the Annual Report risk factor titled “Inflation could adversely affect our business and financial results” for additional detail on potential impacts. Management recognizes these inflationary pressures as a risk to its operations and margins.