NVR · 10-Q · 2026Q2 · Full report
Community Count and Land Position
NVR INC · 2026-08-05 · Importance 64 · Surprise 42 · No source text
NVR continued to rely primarily on fixed-price finished lot purchase agreements with third-party developers to limit the financial requirements and risks of direct land ownership and development. As of June 30, 2026, it controlled approximately 184,400 lots, including 174,900 lots under LPAs supported by approximately $1,012,300 of cash deposits and $7,200 of letters of credit. The company had approximately $134,950 of impairment allowances against deposits for 20,950 lots, $73,300 invested in four joint ventures expected to produce approximately 8,000 lots, and $23,400 of additional JV funding commitments. It also had raw land contracts expected to yield approximately 38,600 lots, supported by $50,000 of cash deposits, and approximately $737,500 of future LPA payment obligations expected to be paid primarily within three years.
Key facts
- We have certain properties under contract expected to yield approximately 38,600 lots which are not included in total lots controlled, and as of June 30, 2026 these properties are controlled with deposits in cash totaling approximately $50,000 of which approximately $12,800 is refundable if certain contractual conditions are not met. source
- We controlled approximately 174,900 lots under LPAs with third parties through deposits in cash and letters of credit totaling approximately $1,012,300 and $7,200, respectively, as of June 30, 2026. source
- We had an aggregate JV investment totaling approximately $73,300 in four JVs expected to produce approximately 8,000 lots as of June 30, 2026. source
- We had additional JV funding commitments totaling approximately $23,400 as of June 30, 2026. source
- We owned land with a carrying value of approximately $21,100 that we intend to develop into approximately 1,500 finished lots as of June 30, 2026. source
- Contract land deposits, net as of June 30, 2026: Mid Atlantic $416,591; North East $94,055; Mid East $93,100; South East $330,797; Total $934,543. source
- Included in the number of controlled lots are approximately 20,950 lots for which we have recorded a contract land deposit impairment allowance of approximately $134,950 as of June 30, 2026. source
- We generally acquire finished building lots from third-party developers pursuant to LPAs that require deposits typically ranging up to 10% of the aggregate purchase price of the finished lots. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| assets | positive | realized | +18.5% | We controlled approximately 174,900 lots under LPAs with third parties through deposits in cash and letters of credit totaling… |
| assets | positive | realized | +1.3% | We had an aggregate JV investment totaling approximately $73,300 in four JVs expected to produce approximately 8,000 lots as of June 30,… |
| assets | positive | realized | +0.9% | We have certain properties under contract expected to yield approximately 38,600 lots which are not included in total lots controlled, and… |
| assets | positive | realized | +0.4% | We owned land with a carrying value of approximately $21,100 that we intend to develop into approximately 1,500 finished lots as of June… |
| liability | negative | committed | -0.4% | We had additional JV funding commitments totaling approximately $23,400 as of June 30, 2026. |
| liability | negative | realized | -0.1% | We controlled approximately 174,900 lots under LPAs with third parties through deposits in cash and letters of credit totaling… |