Form 10-Q - Quarterly report [Sections 13 or 15(d)]

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2024


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ____ to ____

Commission File Number: 1-12378

NVR, Inc.

(Exact name of registrant as specified in its charter)


Virginia						54-1394360
(State or other jurisdiction of incorporation or organization)						(I.R.S. Employer Identification No.)

11700 Plaza America Drive, Suite 500

Reston, Virginia 20190

(703) 956-4000

(Address, including zip code, and telephone number, including area code, of registrant's principal executive offices)

Not Applicable

(Former name, former address, and former fiscal year if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common stock, par value $0.01 per share

NVR

New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☒

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of October 31, 2024 there were 3,063,876 shares of common stock outstanding.

NVR, Inc.

FORM 10-Q

TABLE OF CONTENTS


		Page
PART I	FINANCIAL INFORMATION	1

Item 1.	Condensed Consolidated Financial Statements	1
	Condensed Consolidated Balance Sheets (unaudited)	1
	Condensed Consolidated Statements of Income (unaudited)	3
	Condensed Consolidated Statements of Cash Flows (unaudited)	4
	Notes to Condensed Consolidated Financial Statements (unaudited)	5
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	18
Item 3.	Quantitative and Qualitative Disclosure About Market Risk	32
Item 4.	Controls and Procedures	32


PART II	OTHER INFORMATION	33
Item 1.	Legal Proceedings	33
Item 1A.	Risk Factors	33
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	33
Item 5.	Other Events	33
Item 6.	Exhibits	34

	SIGNATURE	35

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements


NVR, Inc.
Condensed Consolidated Balance Sheets
(in thousands, except share and per share data)
(unaudited)

	September 30, 2024		December 31, 2023
ASSETS
Homebuilding:
Cash and cash equivalents	$	2,474,219	$	3,126,472
Restricted cash	46,474		41,483
Receivables	35,563		29,000
Inventory:
Lots and housing units, covered under sales agreements with customers	1,946,533		1,674,686
Unsold lots and housing units	223,828		214,666
Land under development	63,339		36,895
Building materials and other	23,697		23,903
	2,257,397		1,950,150

Contract land deposits, net	668,436		576,551
Property, plant and equipment, net	85,998		63,716
Operating lease right-of-use assets	74,415		70,384
Reorganization value in excess of amounts allocable to identifiable assets, net	41,580		41,580
Other assets	251,027		242,751
	5,935,109		6,142,087
Mortgage Banking:
Cash and cash equivalents	36,727		36,422
Restricted cash	11,247		11,067
Mortgage loans held for sale, net	379,232		222,560
Property and equipment, net	7,086		6,348
Operating lease right-of-use assets	21,499		23,541
Reorganization value in excess of amounts allocable to identifiable assets, net	7,347		7,347
Other assets	89,912		152,385
	553,050		459,670
Total assets	$	6,488,159	$	6,601,757

See notes to condensed consolidated financial statements.


NVR, Inc.
Condensed Consolidated Balance Sheets (Continued)
(in thousands, except share and per share data)
(unaudited)

	September 30, 2024		December 31, 2023
LIABILITIES AND SHAREHOLDERS' EQUITY
Homebuilding:
Accounts payable	$	370,131	$	347,738
Accrued expenses and other liabilities	406,319		413,043
Customer deposits	358,609		334,441
Operating lease liabilities	79,796		75,797
Senior notes	911,599		913,027
	2,126,454		2,084,046
Mortgage Banking:
Accounts payable and other liabilities	67,029		127,511
Operating lease liabilities	23,428		25,475
	90,457		152,986
Total liabilities	2,216,911		2,237,032

Commitments and contingencies

Shareholders' equity:
Common stock, $0.01 par value; 60,000,000 shares authorized; 20,555,330 shares issued as of both September 30, 2024 and December 31, 2023	206		206
Additional paid-in capital	2,989,776		2,848,528
Deferred compensation trust – 106,697 shares of NVR, Inc. common stock as of both September 30, 2024 and December 31, 2023	(16,710)		(16,710)
Deferred compensation liability	16,710		16,710
Retained earnings	14,589,521		13,365,025
Less treasury stock at cost – 17,490,540 and 17,360,454 shares as of September 30, 2024 and December 31, 2023, respectively	(13,308,255)		(11,849,034)
Total shareholders' equity	4,271,248		4,364,725
Total liabilities and shareholders' equity	$	6,488,159	$	6,601,757

See notes to condensed consolidated financial statements.

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NVR, Inc.
Condensed Consolidated Statements of Income
(in thousands, except per share data)
(unaudited)

	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Homebuilding:
Revenues	$	2,677,640	$	2,512,409	$	7,511,708	$	6,927,511
Other income	33,746		39,914		110,796		107,119
Cost of sales	(2,051,087)		(1,902,174)		(5,724,916)		(5,238,230)
Selling, general and administrative	(149,777)		(142,715)		(443,493)		(434,876)
Operating income	510,522		507,434		1,454,095		1,361,524
Interest expense	(6,855)		(6,628)		(20,214)		(20,257)
Homebuilding income	503,667		500,806		1,433,881		1,341,267

Mortgage Banking:
Mortgage banking fees	55,311		56,616		167,163		158,121
Interest income	4,728		5,067		13,492		11,908
Other income	1,414		1,169		3,918		3,260
General and administrative	(26,317)		(24,050)		(75,026)		(69,538)
Interest expense	(191)		(268)		(556)		(692)
Mortgage banking income	34,945		38,534		108,991		103,059

Income before taxes	538,612		539,340		1,542,872		1,444,326
Income tax expense	(109,289)		(106,183)		(318,376)		(262,790)

Net income	$	429,323	$	433,157	$	1,224,496	$	1,181,536

Basic earnings per share	$	139.65	$	132.92	$	391.37	$	363.14

Diluted earnings per share	$	130.50	$	125.26	$	367.20	$	341.97

Basic weighted average shares outstanding	3,074		3,259		3,129		3,254

Diluted weighted average shares outstanding	3,290		3,458		3,335		3,455

See notes to condensed consolidated financial statements.

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NVR, Inc.

Condensed Consolidated Statements of Cash Flows

(in thousands)

(unaudited)


	Nine Months Ended September 30,
	2024		2023
Cash flows from operating activities:
Net income	$	1,224,496	$	1,181,536
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	13,422		12,585
Equity-based compensation expense	54,465		73,488
Contract land deposit recoveries, net	(4,868)		(6,217)
Gain on sale of loans, net	(135,799)		(127,898)
Mortgage loans closed	(4,568,806)		(4,243,040)
Mortgage loans sold and principal payments on mortgage loans held for sale	4,538,919		4,347,960
Distribution of earnings from unconsolidated joint ventures	1,500		2,000
Net change in assets and liabilities:
Increase in inventory	(307,247)		(215,498)
Increase in contract land deposits	(87,017)		(27,873)
Decrease (increase) in receivables	46,993		(17,628)
Decrease in accounts payable and accrued expenses	(59,417)		(5,669)
Increase in customer deposits	24,168		41,507
Other, net	(3,397)		(12,966)
Net cash provided by operating activities	737,412		1,002,287

Cash flows from investing activities:
Investments in and advances to unconsolidated joint ventures	(1,640)		(1,224)
Distribution of capital from unconsolidated joint ventures	2,715		180
Purchase of property, plant and equipment	(23,621)		(18,531)
Proceeds from the sale of property, plant and equipment	2,749		2,221
Net cash used in investing activities	(19,797)		(17,354)

Cash flows from financing activities:
Purchase of treasury stock	(1,493,362)		(795,387)


Principal payments on finance lease liabilities	(1,808)		(1,233)
Proceeds from the exercise of stock options	130,778		207,163
Net cash used in financing activities	(1,364,392)		(589,457)

Net (decrease) increase in cash, restricted cash, and cash equivalents	(646,777)		395,476
Cash, restricted cash, and cash equivalents, beginning of the period	3,215,444		2,574,518

Cash, restricted cash, and cash equivalents, end of the period	$	2,568,667	$	2,969,994

Supplemental disclosures of cash flow information:
Interest paid during the period, net of interest capitalized	$	15,094	$	15,285
Income taxes paid during the period, net of refunds	$	307,263	$	312,631

See notes to condensed consolidated financial statements.

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NVR, Inc.

Notes to Condensed Consolidated Financial Statements

(dollars in thousands, except per share data)

(unaudited)

1. Significant Accounting Policies

Basis of Presentation

The accompanying unaudited, condensed consolidated financial statements include the accounts of NVR, Inc. (“NVR”, the “Company”, "we", "us" or "our") and its subsidiaries and certain other entities in which the Company is deemed to be the primary beneficiary (see Notes 2 and 3 to the accompanying condensed consolidated financial statements). Intercompany accounts and transactions have been eliminated in consolidation. The statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. Because the accompanying condensed consolidated financial statements do not include all of the information and footnotes required by GAAP, they should be read in conjunction with the financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2023. In the opinion of management, all adjustments (consisting only of normal recurring accruals except as otherwise noted herein) considered necessary for a fair presentation have been included. Operating results for the three and nine months ended September 30, 2024 are not necessarily indicative of the results that may be expected for the year ending December 31, 2024.

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates.

For the three and nine months ended September 30, 2024 and 2023, comprehensive income equaled net income; therefore, a separate statement of comprehensive income is not included in the accompanying condensed consolidated financial statements.

Revenue Recognition

Homebuilding revenue is recognized on the settlement date at the contract sales price, when control is transferred to our customers. Our contract liabilities, which consist of deposits received from customers on homes not settled, were $358,609 and $334,441 as of September 30, 2024 and December 31, 2023, respectively. We expect that substantially all of the customer deposits held as of December 31, 2023 will be recognized in revenue in 2024. Our contract assets consist of prepaid sales compensation and totaled approximately $25,100 and $17,900 as of September 30, 2024 and December 31, 2023, respectively. Prepaid sales compensation is included in homebuilding “Other assets” on the accompanying condensed consolidated balance sheets.

Recently Issued Accounting Pronouncements

In December 2023, the Financial Accounting Standards Board ("FASB") issued ASU 2023-09, "Income Taxes - Improvements to Income Tax Disclosures." The amendments in the ASU require disclosure of specific categories in the rate reconciliation and for the entity to provide additional information for reconciling items that meet a quantitative threshold. The ASU will be effective for our fiscal year ending December 31, 2025. The amendments in the ASU are to be applied on a prospective basis and early adoption is permitted. We are currently evaluating the impact of the adoption of ASU 2023-09 and do not expect it to have a material impact on our consolidated financial statements and related disclosures.

In November 2023, the FASB issued ASU 2023-07, "Segment Reporting - Improvements to Reportable Segment Disclosures." The amendments in the ASU are intended to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses that are regularly provided to the chief operating decision maker and included within each reported measure of segment profit or loss. The amendments also expand interim segment disclosure requirements. The ASU will be effective for our fiscal year ending December 31, 2024 and for interim periods starting in the first quarter of fiscal year 2025. The

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NVR, Inc.

Notes to Condensed Consolidated Financial Statements

(dollars in thousands, except per share data)

(unaudited)

amendments in this ASU are required to be applied on a retrospective basis and early adoption is permitted. We do not expect the adoption of ASU 2023-07 to have a material impact on our consolidated financial statements and related disclosures.

2. Variable Interest Entities ("VIEs")

Fixed Price Finished Lot Purchase Agreements (“LPAs”)

We generally do not engage in the land development business. Instead, we typically acquire finished building lots at market prices from various development entities under LPAs. The LPAs require deposits that may be forfeited if we fail to perform under the LPAs. The deposits required under the LPAs are in the form of cash or letters of credit in varying amounts, and typically range up to 10% of the aggregate purchase price of the finished lots.

The deposit placed by us pursuant to the LPA is deemed to be a variable interest in the respective development entities. Those development entities are deemed to be VIEs. Therefore, the development entities with which we enter into LPAs, including the joint venture limited liability corporations discussed below, are evaluated for possible consolidation by us. We have concluded that we are not the primary beneficiary of the development entities with which we enter into LPAs, and therefore, we do not consolidate any of these VIEs.

As of September 30, 2024, we controlled approximately 144,400 lots under LPAs with third parties through deposits in cash and letters of credit totaling approximately $696,500 and $10,400, respectively. Our sole legal obligation and economic loss for failure to perform under these LPAs is limited to the amount of the deposit pursuant to the liquidated damage provisions contained in the LPAs and, in very limited circumstances, specific performance obligations. For the three months ended September 30, 2024, we incurred pre-tax impairment charges on lot deposits of approximately $3,900. For the nine months ended September 30, 2024, we recorded a net expense reversal of approximately $4,900 related to previously impaired lot deposits based on current market conditions. For the three months ended September 30, 2023, we incurred pre-tax impairment charges on lot deposits of approximately $3,800. For the nine months ended September 30, 2023, we recorded a net expense reversal of approximately $6,200 related to previously impaired lot deposits. Our contract land deposit asset is shown net of a $47,686 and $53,397 impairment reserve as of September 30, 2024 and December 31, 2023, respectively.

In addition, we have certain properties under contract with land owners that are expected to yield approximately 38,200 lots, which are not included in the number of total lots controlled. Some of these properties may require rezoning or other approvals to achieve the expected yield. These properties are controlled with cash deposits totaling approximately $19,700 as of September 30, 2024, of which approximately $5,100 is refundable if certain contractual conditions are not met. We generally expect to assign the raw land contracts to a land developer and simultaneously enter into an LPA with the assignee if the project is determined to be feasible.

Our total risk of loss related to contract land deposits is limited to the amount of the deposits pursuant to the liquidated damages provision of the LPAs. As of September 30, 2024 and December 31, 2023, our total risk of loss was as follows:


	September 30, 2024		December 31, 2023
Contract land deposits	$	716,122	$	629,948
Loss reserve on contract land deposits	(47,686)		(53,397)
Contract land deposits, net	668,436		576,551
Contingent obligations in the form of letters of credit	10,396		7,769
Total risk of loss	$	678,832	$	584,320

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NVR, Inc.

Notes to Condensed Consolidated Financial Statements

(dollars in thousands, except per share data)

(unaudited)

3. Joint Ventures

On a limited basis, we acquire finished lots using joint venture limited liability corporations (“JVs”). The JVs are typically structured such that we are a non-controlling member and are at risk only for the amount we have invested, or have committed to invest, in addition to any deposits placed under LPAs with the joint venture. We are not a borrower, guarantor or obligor on any debt of the JVs, as applicable. We enter into LPAs to purchase lots from these JVs, and as a result have a variable interest in these JVs. We determined that we are not the primary beneficiary in any of the JVs because we and the other JV partner either share power or the other JV partner has the controlling financial interest.

As of September 30, 2024, we had an aggregate investment totaling approximately $27,800 in three JVs that are expected to produce approximately 5,150 finished lots, of which approximately 4,800 lots were controlled by us and the remaining approximately 350 lots were either under contract with unrelated parties or not currently under contract. We had additional funding commitments totaling approximately $9,800 to one of the JVs as of September 30, 2024. As of December 31, 2023, our aggregate investment in JVs totaled approximately $29,200. Investments in JVs for the respective periods are reported in the homebuilding "Other assets" line item on the accompanying condensed consolidated balance sheets. None of the JVs had any indicators of impairment as of September 30, 2024.

We recognize income from the JVs as a reduction to the lot cost of the lots purchased from the respective JVs when the homes are settled, based on the expected total profitability and the total number of lots expected to be produced by the respective JVs.

We classify distributions received from unconsolidated JVs using the cumulative earnings approach. As a result, distributions received up to the amount of cumulative earnings recognized by us are reported as distributions of earnings and those in excess of that amount are reported as a distribution of capital. These distributions are classified within the accompanying condensed consolidated statements of cash flows as cash flows from operating activities and investing activities, respectively.

4. Land Under Development

On a limited basis, we directly acquire raw land parcels already zoned for its intended use to develop into finished lots. Land under development includes the land acquisition costs, direct improvement costs, capitalized interest, where applicable, and real estate taxes. During the first quarter of 2024, we purchased a raw land parcel for approximately $20,000, which is expected to produce approximately 850 lots.

As of September 30, 2024, we owned land with a carrying value of $63,339 that will be developed into approximately 2,600 finished lots. As of December 31, 2023, the carrying value of land under development was $36,895. None of the raw parcels had any indicators of impairment as of September 30, 2024.

5. Capitalized Interest

We capitalize interest costs to land under development during the active development of finished lots. In addition, we capitalize interest costs on our JV investments while the investments are considered qualified assets pursuant to ASC Topic 835-20 - Interest. Capitalized interest is transferred to sold or unsold inventory as the development of finished lots is completed, then charged to cost of sales upon our settlement of homes and the respective lots. Interest incurred in excess of the interest capitalizable based on the level of qualified assets is expensed in the period incurred.

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NVR, Inc.

Notes to Condensed Consolidated Financial Statements

(dollars in thousands, except per share data)

(unaudited)

The following table reflects the changes in our capitalized interest during the three and nine months ended September 30, 2024 and 2023:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Interest capitalized, beginning of period	$	206	$	189	$	151	$	570
Interest incurred	7,121		6,921		20,963		20,750
Interest charged to interest expense	(7,046)		(6,896)		(20,770)		(20,949)
Interest charged to cost of sales	(14)		(22)		(77)		(179)
Interest capitalized, end of period	$	267	$	192	$	267	$	192

6. Earnings per Share

The following weighted average shares and share equivalents were used to calculate basic and diluted earnings per share ("EPS") for the three and nine months ended September 30, 2024 and 2023:


	Three Months Ended September 30,		Nine Months Ended September 30,
	2024	2023	2024	2023
Weighted average number of shares outstanding used to calculate basic EPS	3,074,230	3,258,863	3,128,709	3,253,623
Dilutive securities:
Stock options and restricted share units	215,694	199,279	205,984	201,477
Weighted average number of shares and share equivalents outstanding used to calculate diluted EPS	3,289,924	3,458,142	3,334,693	3,455,100

The following non-qualified stock options ("Options") and restricted stock units ("RSUs") issued under equity incentive plans were outstanding during the three and nine months ended September 30, 2024 and 2023, but were not included in the computation of diluted EPS because the effect would have been anti-dilutive.


	Three Months Ended September 30,		Nine Months Ended September 30,
	2024	2023	2024	2023
Anti-dilutive securities	4,520	4,188	5,060	15,464

7. Shareholders’ Equity

A summary of changes in shareholders’ equity for the three months ended September 30, 2024 is presented below:


	Common Stock		Additional Paid-In Capital		Retained Earnings		Treasury Stock		Deferred Compensation Trust		Deferred Compensation Liability		Total
Balance, June 30, 2024	$	206	$	2,935,053	$	14,160,198	$	(12,961,549)	$	(16,710)	$	16,710	$	4,133,908

Net income	—		—		429,323		—		—		—		429,323

Purchase of common stock for treasury	—		—		—		(359,520)		—		—		(359,520)
Equity-based compensation	—		19,223		—		—		—		—		19,223
Proceeds from Options exercised	—		48,314		—		—		—		—		48,314
Treasury stock issued upon Option exercise	—		(12,814)		—		12,814		—		—		—
Balance, September 30, 2024	$	206	$	2,989,776	$	14,589,521	$	(13,308,255)	$	(16,710)	$	16,710	$	4,271,248

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NVR, Inc.

Notes to Condensed Consolidated Financial Statements

(dollars in thousands, except per share data)

(unaudited)

A summary of changes in shareholders’ equity for the nine months ended September 30, 2024 is presented below:


	Common Stock		Additional Paid-In Capital		Retained Earnings		Treasury Stock		Deferred Compensation Trust		Deferred Compensation Liability		Total
Balance, December 31, 2023	$	206	$	2,848,528	$	13,365,025	$	(11,849,034)	$	(16,710)	$	16,710	$	4,364,725

Net income	—		—		1,224,496		—		—		—		1,224,496

Purchase of common stock for treasury	—		—		—		(1,503,216)		—		—		(1,503,216)
Equity-based compensation	—		54,465		—		—		—		—		54,465
Proceeds from Options exercised	—		130,778		—		—		—		—		130,778
Treasury stock issued upon Option exercise and RSU vesting	—		(43,995)		—		43,995		—		—		—
Balance, September 30, 2024	$	206	$	2,989,776	$	14,589,521	$	(13,308,255)	$	(16,710)	$	16,710	$	4,271,248

We repurchased 42,629 and 192,655 shares of our outstanding common stock during the three and nine months ended September 30, 2024, respectively. We settle Option exercises and vesting of RSUs by issuing shares of treasury stock. We issued 17,153 and 61,939 shares from the treasury account during the three and nine months ended September 30, 2024, respectively, in settlement of Option exercises and vesting of RSUs. Shares are relieved from the treasury account based on the weighted average cost basis of treasury shares.

A summary of changes in shareholders’ equity for the three months ended September 30, 2023 is presented below:


	Common Stock		Additional Paid-In Capital		Retained Earnings		Treasury Stock		Deferred Compensation Trust		Deferred Compensation Liability		Total
Balance, June 30, 2023	$	206	$	2,747,687	$	12,521,793	$	(11,116,423)	$	(16,710)	$	16,710	$	4,153,263


Net income	—		—		433,157		—		—		—		433,157

Purchase of common stock for treasury	—		—		—		(485,328)		—		—		(485,328)
Equity-based compensation	—		26,052		—		—		—		—		26,052
Proceeds from Options exercised	—		45,439		—		—		—		—		45,439
Treasury stock issued upon Option exercise	—		(18,151)		—		18,151		—		—		—
Balance, September 30, 2023	$	206	$	2,801,027	$	12,954,950	$	(11,583,600)	$	(16,710)	$	16,710	$	4,172,583

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NVR, Inc.

Notes to Condensed Consolidated Financial Statements

(dollars in thousands, except per share data)

(unaudited)

A summary of changes in shareholders’ equity for the nine months ended September 30, 2023 is presented below:


	Common Stock		Additional Paid-In Capital		Retained Earnings		Treasury Stock		Deferred Compensation Trust		Deferred Compensation Liability		Total
Balance, December 31, 2022	$	206	$	2,600,014	$	11,773,414	$	(10,866,785)	$	(16,710)	$	16,710	$	3,506,849


Net income	—		—		1,181,536		—		—		—		1,181,536

Purchase of common stock for treasury	—		—		—		(796,453)		—		—		(796,453)
Equity-based compensation	—		73,488		—		—		—		—		73,488
Proceeds from Options exercised	—		207,163		—		—		—		—		207,163
Treasury stock issued upon Option exercise	—		(79,638)		—		79,638		—		—		—
Balance, September 30, 2023	$	206	$	2,801,027	$	12,954,950	$	(11,583,600)	$	(16,710)	$	16,710	$	4,172,583

We repurchased 78,750 and 134,751 shares of our outstanding common stock during the three and nine months ended September 30, 2023, respectively. We issued 28,189 and 125,745 shares from the treasury account during the three and nine months ended September 30, 2023, respectively, in settlement of Option exercises and vesting of RSUs.

8. Product Warranties

We establish warranty and product liability reserves (“Warranty Reserve”) to provide for estimated future expenses as a result of construction and product defects, product recalls and litigation incidental to our homebuilding business. Liability estimates are determined based on management’s judgment, considering such factors as historical experience, the estimated current cost of corrective action, manufacturers’ and subcontractors’ participation in sharing the cost of corrective action, consultations with third party experts such as engineers, and discussions with our general counsel and outside counsel retained to handle specific product liability cases.

The following table reflects the changes in our Warranty Reserve during the three and nine months ended September 30, 2024 and 2023:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Warranty reserve, beginning of period	$	143,341	$	142,420	$	146,283	$	144,006
Provision	26,270		25,503		68,491		69,085
Payments	(25,672)		(24,129)		(70,835)		(69,297)
Warranty reserve, end of period	$	143,939	$	143,794	$	143,939	$	143,794

9. Segment Disclosures

We disclose four homebuilding reportable segments that aggregate geographically our homebuilding operating divisions, and we present our mortgage banking operations as one reportable segment. The homebuilding

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NVR, Inc.

Notes to Condensed Consolidated Financial Statements

(dollars in thousands, except per share data)

(unaudited)

reportable segments are comprised of operating divisions in the following geographic areas:


Mid Atlantic:						Maryland, Virginia, West Virginia, Delaware and Washington, D.C.
North East:						New Jersey and Eastern Pennsylvania
Mid East:						New York, Ohio, Western Pennsylvania, Indiana and Illinois
South East:						North Carolina, South Carolina, Tennessee, Florida, Georgia and Kentucky

Homebuilding profit before tax includes all revenues and income generated from the sale of homes, less the cost of homes sold, selling, general and administrative expenses and a corporate capital allocation charge. The corporate capital allocation charge is eliminated in consolidation and is based on the segment’s average net assets employed. The corporate capital allocation charged to the operating segment allows the Chief Operating Decision Maker (“CODM”) to determine whether the operating segment’s results are providing the desired rate of return after covering our cost of capital.

Assets not allocated to the operating segments are not included in either the operating segment’s corporate capital allocation charge or the CODM’s evaluation of the operating segment’s performance. We record charges on contract land deposits when it is determined that it is probable that recovery of the deposit is impaired. For segment reporting purposes, impairments on contract land deposits are generally charged to the operating segment upon the termination of an LPA with the developer, or the restructuring of an LPA resulting in the forfeiture of the deposit. Mortgage banking profit before tax consists of revenues generated from mortgage financing, title insurance and closing services, less the costs of such services and general and administrative costs. Mortgage banking operations are not charged a corporate capital allocation charge.

In addition to the corporate capital allocation and contract land deposit impairments discussed above, the other reconciling items between segment profit and consolidated profit before taxes include unallocated corporate overhead (including all management incentive compensation), equity-based compensation expense, consolidation adjustments and external corporate interest expense. Our overhead functions such as accounting, treasury and human resources are centrally performed and these costs are not allocated to our operating segments. Consolidation adjustments consist of such items necessary to convert the reportable segments’ results, which are predominantly maintained on a cash basis, to a full accrual basis for external financial statement presentation purposes, and are not allocated to our operating segments. External corporate interest expense primarily consists of interest charges on our 3.00% Senior Notes due 2030 (the “Senior Notes”), which are not charged to the operating segments because the charges are included in the corporate capital allocation discussed above.

The following tables present segment revenues, profit and assets with reconciliations to the amounts reported for the consolidated enterprise, where applicable:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Revenues:
Homebuilding Mid Atlantic	$	1,147,893	$	1,146,559	$	3,299,047	$	3,146,501
Homebuilding North East	300,448		268,237		843,452		684,593
Homebuilding Mid East	501,190		468,727		1,352,137		1,282,806
Homebuilding South East	728,109		628,886		2,017,072		1,813,611
Mortgage Banking	55,311		56,616		167,163		158,121
Total consolidated revenues	$	2,732,951	$	2,569,025	$	7,678,871	$	7,085,632

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NVR, Inc.

Notes to Condensed Consolidated Financial Statements

(dollars in thousands, except per share data)

(unaudited)


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Income before taxes:
Homebuilding Mid Atlantic	$	214,132	$	212,826	$	613,262	$	567,119
Homebuilding North East	56,246		48,787		157,476		125,779
Homebuilding Mid East	81,385		75,136		211,374		193,360
Homebuilding South East	95,089		107,666		280,936		339,723
Mortgage Banking	36,156		39,921		112,046		107,191
Total segment profit before taxes	483,008		484,336		1,375,094		1,333,172
Reconciling items:
Contract land deposit reserve adjustment (1)	(3,079)		(3,783)		5,712		6,696
Equity-based compensation expense (2)	(19,223)		(26,052)		(54,465)		(73,488)
Corporate capital allocation (3)	86,489		74,171		246,044		215,862
Unallocated corporate overhead	(36,780)		(38,376)		(122,300)		(130,701)
Consolidation adjustments and other	2,575		16,947		6,666		10,948
Corporate interest expense	(6,787)		(6,583)		(20,052)		(20,126)
Corporate interest income	32,409		38,680		106,173		101,963
Reconciling items sub-total	55,604		55,004		167,778		111,154
Consolidated income before taxes	$	538,612	$	539,340	$	1,542,872	$	1,444,326

(1)This item represents changes to the contract land deposit impairment reserve, which are not allocated to our reportable segments. See further discussion of lot deposit impairment charges in Note 2.

(2)The decrease in equity-based compensation expense for the three and nine-month periods ended September 30, 2024 was primarily attributable to the Options and RSUs issued as part of the 2018 four-year block grant being fully vested as of December 31, 2023.

(3)This item represents the elimination of the corporate capital allocation charge included in the respective homebuilding reportable segments. The corporate capital allocation charge is based on the segment’s monthly average asset balance, and was as follows for the periods presented:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Corporate capital allocation charge:
Homebuilding Mid Atlantic	$	35,976	$	33,994	$	104,872	$	102,509
Homebuilding North East	10,578		8,944		30,456		24,542
Homebuilding Mid East	11,929		9,974		32,850		29,453
Homebuilding South East	28,006		21,259		77,866		59,358
Total	$	86,489	$	74,171	$	246,044	$	215,862

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NVR, Inc.

Notes to Condensed Consolidated Financial Statements

(dollars in thousands, except per share data)

(unaudited)


	September 30, 2024		December 31, 2023
Assets:
Homebuilding Mid Atlantic	$	1,337,734	$	1,252,360
Homebuilding North East	376,051		314,904
Homebuilding Mid East	437,193		368,154
Homebuilding South East	992,687		796,505
Mortgage Banking	545,703		452,323
Total segment assets	3,689,368		3,184,246
Reconciling items:
Cash and cash equivalents	2,474,219		3,126,472
Deferred taxes	151,699		148,005
Intangible assets and goodwill	49,368		49,368
Operating lease right-of-use assets	74,415		70,384
Finance lease right-of-use assets	31,038		13,310
Contract land deposit reserve	(47,686)		(53,397)
Consolidation adjustments and other	65,738		63,369
Reconciling items sub-total	2,798,791		3,417,511
Consolidated assets	$	6,488,159	$	6,601,757

10. Fair Value

GAAP assigns a fair value hierarchy to the inputs used to measure fair value. Level 1 inputs are quoted prices in active markets for identical assets and liabilities. Level 2 inputs are inputs other than quoted market prices that are observable for the asset or liability, either directly or indirectly. Level 3 inputs are unobservable inputs.

Financial Instruments

The estimated fair values of our Senior Notes as of September 30, 2024 and December 31, 2023 were $833,796 and $803,646, respectively. The estimated fair value is based on recent market prices of similar transactions, which is classified as Level 2 within the fair value hierarchy. The carrying values as of September 30, 2024 and December 31, 2023 were $911,599 and $913,027, respectively.

Due to the short term nature of our cash equivalents, we believe that insignificant differences exist between their carrying value and fair value.

Derivative Instruments and Mortgage Loans Held for Sale

In the normal course of business, our wholly-owned mortgage subsidiary, NVR Mortgage Finance, Inc. (“NVRM”), enters into contractual commitments to extend credit to our homebuyers with fixed expiration dates. The commitments become effective when the borrowers "lock-in" a specified interest rate within time frames established by NVRM, and some of these commitments include a prepaid float down option. All mortgagors are evaluated for credit worthiness prior to the extension of the commitment. Market risk arises if interest rates move adversely between the time of the "lock-in" of rates by the borrower and the sale date of the loan to an investor. To mitigate the effect of the interest rate risk inherent in providing rate lock commitments to borrowers, NVRM enters into optional or mandatory delivery forward sale contracts to sell whole loans and mortgage-backed securities to investors. The forward sales contracts lock-in a range of interest rates and prices for the sale of loans similar to the specific rate lock commitments. NVRM does not engage in speculative or trading derivative activities. Both the rate lock commitments to borrowers and the forward sale contracts to investors are undesignated derivatives and, accordingly, are marked to fair value through earnings. As of September 30, 2024, there were contractual

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NVR, Inc.

Notes to Condensed Consolidated Financial Statements

(dollars in thousands, except per share data)

(unaudited)

commitments to extend credit to borrowers aggregating $2,240,991 and open forward delivery contracts aggregating $2,159,948, which hedge both the rate lock commitments and closed loans held for sale.

The fair value of NVRM’s rate lock commitments to borrowers and the related input levels include, as applicable:

i)the assumed gain/loss of the expected resultant loan sale (Level 2);

ii)the effects of interest rate movements between the date of the rate lock and the balance sheet date (Level 2); and

iii)the value of the servicing rights associated with the loan (Level 2).

The assumed gain/loss considers the excess servicing to be received or buydown fees to be paid upon securitization of the loan. The excess servicing and buydown fees are calculated pursuant to contractual terms with investors. To calculate the effects of interest rate movements, NVRM utilizes applicable published mortgage-backed security prices, and multiplies the price movement between the rate lock date and the balance sheet date by the notional loan commitment amount. NVRM sells its loans primarily on a servicing released basis, and receives a servicing released premium upon sale. Thus, the value of the servicing rights is included in the fair value measurement and is based upon contractual terms with investors and varies depending on the loan type. NVRM assumes a fallout rate when measuring the fair value of rate lock commitments. Fallout is defined as locked loan commitments for which NVRM does not close a mortgage loan and is based on historical experience and market conditions.

The fair value of NVRM’s forward sales contracts to investors solely considers the market price movement of the same type of security between the trade date and the balance sheet date (Level 2). The market price changes are multiplied by the notional amount of the forward sales contracts to measure the fair value.

Mortgage loans held for sale are recorded at fair value when closed, and thereafter are carried at the lower of cost or fair value, net of deferred origination costs, until sold. Fair value is measured using Level 2 inputs. As of September 30, 2024, the fair value of loans held for sale of $379,232 included on the accompanying condensed consolidated balance sheet was increased by $12,114 from the aggregate principal balance of $367,118. As of December 31, 2023, the fair value of loans held for sale of $222,560 was increased by $6,349 from the aggregate principal balance of $216,211.

The fair value measurement of NVRM's undesignated derivative instruments was as follows:


	September 30, 2024		December 31, 2023
Rate lock commitments:
Gross assets	$	56,189	$	61,150
Gross liabilities	1,575		168
Net rate lock commitments	$	54,614	$	60,982
Forward sales contracts:
Gross assets	$	1,254	$	8
Gross liabilities	4,921		18,305
Net forward sales contracts	$	(3,667)	$	(18,297)

As of both September 30, 2024 and December 31, 2023, the net rate lock commitments are reported in mortgage banking "Other assets" and the net forward sales contracts are reported in mortgage banking "Accounts payable and other liabilities".

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NVR, Inc.

Notes to Condensed Consolidated Financial Statements

(dollars in thousands, except per share data)

(unaudited)

The fair value measurement as of September 30, 2024 was as follows:


	Notional or Principal Amount		Assumed Gain From Loan Sale		Interest Rate Movement Effect		Servicing Rights Value		Security Price Change		Total Fair Value Measurement
Rate lock commitments	$	2,240,991	$	4,178	$	23,157	$	27,279	$	—	$	54,614
Forward sales contracts	$	2,159,948	—		—		—		(3,667)		(3,667)
Mortgages held for sale	$	367,118	764		6,534		4,816		—		12,114
Total fair value measurement			$	4,942	$	29,691	$	32,095	$	(3,667)	$	63,061

The total fair value measurement as of December 31, 2023 was a net gain of $49,034. NVRM recorded a fair value adjustment to income of $17,529 and $14,027 for the three and nine months ended September 30, 2024, respectively. NVRM recorded a fair value adjustment to expense of $32,167 for the three months ended September 30, 2023, and recorded a fair value adjustment to income of $10,322 for the nine months ended September 30, 2023.

Unrealized gains/losses from the change in the fair value measurements are included in earnings as a component of mortgage banking fees in the accompanying condensed consolidated statements of income. The fair value measurement will be impacted in the future by the change in the value of the servicing rights, interest rate movements, security price fluctuations, and the volume and product mix of NVRM’s closed loans and locked loan commitments.

11. Debt

As of September 30, 2024, we had the following debt instruments outstanding:

Senior Notes

Our outstanding Senior Notes have an aggregate principal balance of $900,000, mature on May 15, 2030 and bear interest at 3.00%, payable semi-annually in arrears on May 15 and November 15. The Senior Notes are senior unsecured obligations and rank equally in right of payment with any of our existing and future unsecured senior indebtedness. The Senior Notes were issued in three separate issuances, $600,000 issued at a discount to yield 3.02%, and the two additional issuances totaling $300,000 issued at a premium to yield 2.00%. The Senior Notes have been reflected net of the unamortized discount or premium, as applicable, and the unamortized debt issuance costs in the accompanying condensed consolidated balance sheet.

The indenture governing the Senior Notes does not contain any financial covenants; however, it does contain, among other items, and subject to certain exceptions, covenants that restrict our ability to create, incur, assume or guarantee secured debt, enter into sale and leaseback transactions and conditions related to mergers and/or the sale of assets. We were in compliance with all covenants under the Senior Notes as of September 30, 2024.

Credit Agreement

We have an unsecured Credit Agreement (the “Credit Agreement”), which provides for aggregate revolving loan commitments of $300,000 (the “Facility”). Under the Credit Agreement, we may request increases of up to $300,000 to the Facility in the form of revolving loan commitments or term loans to the extent that new or existing lenders agree to provide additional revolving loan or term loan commitments. The Credit Agreement provides for a $100,000 sublimit for the issuance of letters of credit, of which approximately $17,100 was outstanding as of September 30, 2024. The Credit Agreement termination date is February 12, 2026. There were no borrowings outstanding under the Facility as of September 30, 2024.

Repurchase Agreement

NVRM provides for its mortgage origination and other operating activities using cash generated from its operations, borrowings from its parent company, NVR, as well as a revolving mortgage repurchase agreement (the

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NVR, Inc.

Notes to Condensed Consolidated Financial Statements

(dollars in thousands, except per share data)

(unaudited)

“Repurchase Agreement”), which is non-recourse to NVR. The Repurchase Agreement provides for loan purchases up to $150,000, subject to certain sub-limits. Amounts outstanding under the Repurchase Agreement are collateralized by the Company’s mortgage loans held for sale.

Effective July 16, 2024, NVRM entered into the Second Amendment to Second Amended and Restated Master Repurchase Agreement with U.S. Bank National Association, as Agent and a Buyer (the "Amended MRA"), which extended the term of the Repurchase Agreement through July 14, 2025. All other terms and conditions under the Amended Repurchase Agreement remained materially consistent. As of September 30, 2024, there were no borrowing base limitations reducing the amount available under the Repurchase Agreement and there were no borrowings outstanding.

12. Commitments and Contingencies

We are involved in various litigation arising in the ordinary course of business. In the opinion of management, and based on advice of legal counsel, this litigation is not expected to have a material adverse effect on our financial position, results of operations or cash flows. Legal costs incurred in connection with outstanding litigation are expensed as incurred.

13. Leases

We have operating leases for our corporate and division offices, production facilities, model homes, and certain office and production equipment. Additionally, we have finance leases for certain production equipment and facilities which are recorded in homebuilding "Property, plant and equipment, net" and "Accrued expenses and other liabilities" on the accompanying condensed consolidated balance sheets. Our finance lease Right-of-use ("ROU") assets and finance lease liabilities were $31,038 and $33,198, respectively, as of September 30, 2024, and $13,310 and $14,965, respectively, as of December 31, 2023. Our leases have remaining lease terms of up to 15.9 years, some of which include options to extend the lease for up to 20 years, and some of which include options to terminate the lease.

We recognize operating lease expense on a straight-line basis over the lease term. We have elected to use the portfolio approach for certain equipment leases which have similar lease terms and payment schedules. Additionally, for certain equipment we account for the lease and non-lease components as a single lease component. Our sublease income is de minimis.

We have certain leases, primarily the leases of model homes, which have initial lease terms of twelve months or less ("Short-term leases"). We elected to exclude these leases from the recognition requirements under Topic 842, and these leases have not been included in our recognized ROU assets and lease liabilities.

The components of lease expense were as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Lease expense
Operating lease expense	$	10,078	$	9,385	$	28,939	$	28,000
Finance lease expense:
Amortization of ROU assets	983		520		2,313		1,533
Interest on lease liabilities	350		106		703		316
Short-term lease expense	8,320		7,528		24,399		22,551

Total lease expense	$	19,731	$	17,539	$	56,354	$	52,400

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NVR, Inc.

Notes to Condensed Consolidated Financial Statements

(dollars in thousands, except per share data)

(unaudited)

Other information related to leases was as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024			2023
Supplemental Cash Flows Information:
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	8,153	$	7,129	$	23,466		$	21,865
Operating cash flows from finance leases	350		106		703			316
Financing cash flows from finance leases	752		422		1,808			1,233

ROU assets obtained in exchange for lease obligations:
Operating leases	$	9,060	$	7,164	$	22,551		$	30,501
Finance leases	$	2,184	$	126	$	20,041		$	625


					September 30, 2024			December 31, 2023
Weighted-average remaining lease term (in years):
Operating leases					6.0			5.8
Finance leases					10.3			9.9

Weighted-average discount rate:
Operating leases					4.5		%	4.2		%
Finance leases					4.6		%	3.1		%

14. Income Taxes

Our effective tax rate for the three and nine months ended September 30, 2024 was 20.3% and 20.6%, respectively, compared to 19.7% and 18.2% for the three and nine months ended September 30, 2023, respectively. The increase in the effective tax rate in the three and nine month periods of 2024 compared to the same periods in 2023 was primarily attributable to a lower income tax benefit recognized for excess tax benefits from stock option exercises, which totaled $23,128 and $73,736 for the three and nine months ended September 30, 2024, respectively, and $31,877 and $111,028 for the three and nine months ended September 30, 2023, respectively.

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Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations

(dollars in thousands, except per share data)

Forward-Looking Statements

Some of the statements in this Quarterly Report on Form 10-Q, as well as statements made by us in periodic press releases or other public communications, constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Certain, but not necessarily all, of such forward-looking statements can be identified by the use of forward-looking terminology, such as “believes,” “expects,” “may,” “will,” “should” or “anticipates” or the negative thereof or other comparable terminology. All statements other than of historical facts are forward-looking statements. Forward-looking statements contained in this document may include those regarding market trends, our financial position and financial results, business strategy, the outcome of pending litigation, investigations or similar contingencies, projected plans and objectives of management for future operations. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results or performance to be materially different from future results, performance or achievements expressed or implied by the forward-looking statements. Such risk factors include, but are not limited to the following: general economic and business conditions (on both a national and regional level); interest rate changes; access to suitable financing by us and our customers; increased regulation in the mortgage banking industry; the ability of our mortgage banking subsidiary to sell loans it originates into the secondary market; competition; the availability and cost of land and other raw materials used by us in our homebuilding operations; shortages of labor; the economic impact of a major epidemic or pandemic; weather related slow-downs; building moratoriums; governmental regulation; fluctuation and volatility of stock and other financial markets; mortgage financing availability; and other factors over which we have little or no control. We undertake no obligation to update such forward-looking statements except as required by law. For additional information regarding risk factors, see Part II, Item 1A of this Quarterly Report on Form 10-Q and Part I, Item 1A of our Annual Report on Form 10-K for the fiscal year ended December 31, 2023.

Unless the context otherwise requires, references to “NVR,” “we,” “us,” or “our” include NVR and its consolidated subsidiaries.

Results of Operations for the Three and Nine Months Ended September 30, 2024 and 2023

Business Environment and Current Outlook

Demand for new homes remained solid in the third quarter of 2024 despite continued affordability issues driven by high mortgage interest rates and home prices. New home demand continues to be favorably impacted by a limited supply of homes in the resale market; however, we expect that affordability issues, inflationary pressures, interest rate volatility and economic uncertainty may weigh on future demand. We also expect to continue to face cost pressures related to building materials, labor and land costs which we expect will impact profit margins based on our ability to manage these costs while balancing sales pace and home prices. Although we are unable to predict the extent to which this will impact our operational and financial performance, we believe that we are well positioned to take advantage of opportunities that may arise from future economic and homebuilding market volatility due to the strength of our balance sheet and our disciplined lot acquisition strategy.

Business

Our primary business is the construction and sale of single-family detached homes, townhomes and condominiums, all of which are primarily constructed on a pre-sold basis. To fully serve customers of our homebuilding operations, we also operate a mortgage banking and title services business. We primarily conduct our operations in mature markets. Additionally, we generally grow our business through market share gains in our existing markets and by expanding into markets contiguous to our current active markets. Our four homebuilding reportable segments consist of the following regions:

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Mid Atlantic:						Maryland, Virginia, West Virginia, Delaware and Washington, D.C.
North East:						New Jersey and Eastern Pennsylvania
Mid East:						New York, Ohio, Western Pennsylvania, Indiana and Illinois
South East:						North Carolina, South Carolina, Tennessee, Florida, Georgia and Kentucky

Our lot acquisition strategy is predicated upon avoiding the financial requirements and risks associated with direct land ownership and development. We generally do not engage in land development (see discussion below of our land development activities). Instead, we typically acquire finished building lots from various third party land developers pursuant to fixed price finished lot purchase agreements (“LPAs”). These LPAs require deposits, typically ranging up to 10% of the aggregate purchase price of the finished lots, in the form of cash or letters of credit that may be forfeited if we fail to perform under the LPA. This strategy has allowed us to maximize inventory turnover, which we believe enables us to minimize market risk and to operate with less capital, thereby enhancing rates of return on equity and total capital.

In addition to constructing homes primarily on a pre-sold basis and utilizing what we believe is a conservative lot acquisition strategy, we focus on obtaining and maintaining a leading market position in each market we serve. This strategy allows us to gain valuable efficiencies and competitive advantages in our markets, which we believe contributes to minimizing the adverse effects of regional economic cycles and provides growth opportunities within these markets. Our continued success is contingent upon our ability to control an adequate supply of finished lots on which to build.

In certain specific strategic circumstances we engage in joint venture arrangements with land developers or directly acquire raw ground already zoned for its intended use for development. Once we acquire control of raw ground, we determine whether to sell the raw parcel to a developer and enter into an LPA with the developer to purchase the finished lots or to hire a developer to develop the land on our behalf. While joint venture arrangements and direct land development activity are not our preferred method of acquiring finished building lots, we may enter into additional transactions in the future on a limited basis where there exists a compelling strategic or prudent financial reason to do so. We expect, however, to continue to acquire substantially all our finished lot inventory using LPAs with forfeitable deposits.

As of September 30, 2024, we controlled approximately 151,800 lots as described below.

Lot Purchase Agreements

We controlled approximately 144,400 lots under LPAs with third parties through deposits in cash and letters of credit totaling approximately $696,500 and $10,400, respectively. Included in the number of controlled lots are approximately 9,600 lots for which we have recorded a contract land deposit impairment reserve of approximately $47,700 as of September 30, 2024.

Joint Venture Limited Liability Corporations (“JVs”)

We had an aggregate investment totaling approximately $27,800 in three JVs, expected to produce approximately 5,150 lots. Of the lots to be produced by the JVs, approximately 4,800 lots were controlled by us and approximately 350 were either under contract with unrelated parties or currently not under contract. We had additional funding commitments totaling approximately $9,800 to one of the JVs as of September 30, 2024.

Land Under Development

We owned land with a carrying value of approximately $63,300 that will be developed into approximately 2,600 finished lots.

See Notes 2, 3 and 4 to the condensed consolidated financial statements included herein for additional information regarding LPAs, JVs and land under development, respectively.

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Raw Land Purchase Agreements

In addition, we have certain properties under contract with land owners that are expected to yield approximately 38,200 lots, which are not included in the number of total lots controlled. Some of these properties may require rezoning or other approvals to achieve the expected yield. As of September 30, 2024, these properties are controlled with deposits in cash totaling approximately $19,700, of which approximately $5,100 is refundable if certain contractual conditions are not met. We generally expect to assign the raw land contracts to a land developer and simultaneously enter into an LPA with the assignee if the project is determined to be feasible.

Key Financial Results

Our consolidated revenues for the third quarter of 2024 totaled $2,732,951, a 6% increase from the third quarter of 2023. Net income for the third quarter ended September 30, 2024 was $429,323, or $130.50 per diluted share. For the third quarter ended September 30, 2024, net income decreased 1% and diluted earnings per share increased 4% when compared to net income and diluted earnings per share for the third quarter of 2023, respectively. Our homebuilding gross profit margin percentage decreased to 23.4% in the third quarter of 2024 from 24.3% in the third quarter of 2023. New orders, net of cancellations (“New Orders”) increased by 19% in the third quarter of 2024 compared to the third quarter of 2023. The New Order cancellation rate for the third quarter of 2024 increased to 14.5% from 13.6% in the same period in 2023. The average sales price for New Orders in the third quarter of 2024 was $450.7, a decrease of 1% compared to the third quarter of 2023.

Homebuilding Operations

The following table summarizes the results of operations and other data for our homebuilding operations:


	Three Months Ended September 30,						Nine Months Ended September 30,
	2024			2023			2024			2023
Financial Data:
Revenues	$	2,677,640		$	2,512,409		$	7,511,708		$	6,927,511
Cost of sales	$	2,051,087		$	1,902,174		$	5,724,916		$	5,238,230
Gross profit margin percentage	23.4		%	24.3		%	23.8		%	24.4		%
Selling, general and administrative expenses	$	149,777		$	142,715		$	443,493		$	434,876
Operating Data:
New orders (units)	5,650			4,746			17,766			16,539
Average new order price	$	450.7		$	456.1		$	454.7		$	447.7
Settlements (units)	5,908			5,606			16,656			15,330
Average settlement price	$	453.2		$	448.0		$	451.0		$	451.8
Backlog (units)							11,339			10,371
Average backlog price							$	469.5		$	463.1
New order cancellation rate	14.5		%	13.6		%	13.5		%	12.7		%

Consolidated Homebuilding - Three Months Ended September 30, 2024 and 2023

Homebuilding revenues increased 7% in the third quarter of 2024 compared to the same period in 2023, primarily as a result of a 5% increase in the number of units settled. The increase in settlements was primarily attributable to a 3% higher backlog unit balance entering the third quarter of 2024 compared to the backlog unit balance entering the third quarter of 2023, coupled with a higher backlog turnover rate quarter over quarter. Gross profit margin percentage in the third quarter of 2024 decreased to 23.4%, from 24.3% in the third quarter of 2023. Gross profit margin was negatively impacted by higher lot costs and closing cost assistance quarter over quarter.

Selling, general and administrative (“SG&A”) expense in the third quarter of 2024 increased by approximately $7,100 compared to the third quarter of 2023, but as a percentage of revenue decreased to 5.6% from

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5.7% quarter over quarter. The increase in SG&A expense was primarily attributable to a $7,000 increase in personnel costs attributable to an increase in headcount quarter over quarter. Additionally, sales and marketing expenses were approximately $3,300 higher quarter over quarter due to an increase in model home related expenses. These increases in SG&A expense were partially offset by a $6,600 decrease in equity-based compensation quarter over quarter due primarily to the Options and RSUs issued as part of the 2018 four-year block grant being fully vested as of December 31, 2023.

New Orders increased 19%, while the average sales price of New Orders decreased 1% in the third quarter of 2024 compared to the third quarter of 2023. New Orders were impacted primarily by a higher sales absorption rate in the third quarter of 2024.

Consolidated Homebuilding - Nine Months Ended September 30, 2024 and 2023

Homebuilding revenues increased 8% in the first nine months of 2024 compared to the same period in 2023, primarily as a result of a 9% increase in the number of units settled. The increase in settlements was attributable to a 12% higher backlog unit balance entering 2024 compared to the backlog unit balance entering 2023. Gross profit margin percentage in the first nine months of 2024 decreased to 23.8% from 24.4% in the first nine months of 2023. Gross profit margin was negatively impacted by higher lot costs and closing cost assistance year over year.

SG&A expense in the first nine months of 2024 increased by approximately $8,600 compared to the same period in 2023, and as a percentage of revenue decreased to 5.9% in 2024 from 6.3% in 2023. The increase in SG&A expense was primarily attributable to a $14,500 increase in personnel costs attributable to an increase in headcount year over year. Additionally, sales and marketing expenses were approximately $7,200 higher year over year due to an increase in model home related expenses. These increases in SG&A expense were partially offset by a $17,700 decrease in equity-based compensation year over year due primarily to the Options and RSUs issued as part of the 2018 four-year block grant being fully vested as of December 31, 2023.

New Orders and the average sales price of New Orders increased 7% and 2%, respectively, in the first nine months of 2024 compared to the same period in 2023. New Orders were favorably impacted primarily by a higher sales absorption rate year over year. The increase in the average sales price of New Orders is primarily attributable to a relative shift to higher priced markets and communities in certain of our reporting segments as discussed in the respective segments below.

Our backlog represents homes sold but not yet settled with our customers. As of September 30, 2024, our backlog increased on a unit basis by 9% to 11,339 units and on a dollar basis by 11% to $5,323,366 when compared to 10,371 units and $4,802,807, respectively, as of September 30, 2023. The increase in the number of backlog units was primarily attributable to a 12% higher backlog unit balance entering 2024 compared to the backlog unit balance entering 2023. Backlog dollars were higher primarily due to the increase in backlog units year over year.

Our backlog may be impacted by customer cancellations for various reasons that are beyond our control, such as failure to obtain mortgage financing, inability to sell an existing home, job loss, or a variety of other reasons. In any period, a portion of the cancellations that we experience are related to new sales that occurred during the same period, and a portion are related to sales that occurred in prior periods and therefore appeared in the opening backlog for the current period. Calculated as the total of all cancellations during the period as a percentage of gross sales during that same period, our cancellation rate was approximately 14% and 13% in the first nine months of 2024 and 2023, respectively. During the most recent four quarters, approximately 5% of a reporting quarter’s opening backlog cancelled during the fiscal quarter. We can provide no assurance that our historical cancellation rates are indicative of the actual cancellation rate that may occur during the remainder of 2024 or future years. Other than those units that are cancelled, we expect to settle substantially all of our September 30, 2024 backlog within the next twelve months.

The backlog turnover rate is impacted by various factors, including, but not limited to, changes in New Order activity, internal production capacity, external subcontractor capacity, building material supply chain disruptions and other external factors over which we do not exercise control.

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Reportable Segments

Homebuilding segment profit includes all revenues and income generated from the sale of homes, less the cost of homes sold, SG&A expenses, and a corporate capital allocation charge determined by corporate management. The corporate capital allocation charge eliminates in consolidation and is based on the segment’s average net assets employed. The corporate capital allocation charged to the operating segment allows the Chief Operating Decision Maker to determine whether the operating segment is providing the desired rate of return after covering our cost of capital.

We record charges on contract land deposits when we determine that it is probable that recovery of the deposit is impaired. For segment reporting purposes, impairments on contract land deposits are generally charged to the operating segment upon the termination of an LPA with the developer, or the restructuring of an LPA resulting in the forfeiture of the deposit. We evaluate our entire net contract land deposit portfolio for impairment each quarter. For presentation purposes below, the contract land deposit reserve as of September 30, 2024 and December 31, 2023 has been allocated to the respective year’s reportable segments to show contract land deposits on a net basis. The net contract land deposit balances below also include approximately $10,400 and $7,700 as of September 30, 2024 and December 31, 2023, respectively, of letters of credit issued as deposits in lieu of cash.

The following tables summarize certain homebuilding operating activity by reportable segment for the three and nine months ended September 30, 2024 and 2023.

Selected Segment Financial Data:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Revenues:
Mid Atlantic	$	1,147,893	$	1,146,559	$	3,299,047	$	3,146,501
North East	300,448		268,237		843,452		684,593
Mid East	501,190		468,727		1,352,137		1,282,806
South East	728,109		628,886		2,017,072		1,813,611


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Gross profit margin:
Mid Atlantic	$	288,131	$	281,230	$	830,097	$	775,983
North East	78,251		67,861		221,829		180,389
Mid East	114,087		103,918		302,977		278,983
South East	159,431		156,846		459,137		476,319


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Gross profit margin percentage:
Mid Atlantic	25.1	%	24.5	%	25.2	%	24.7	%
North East	26.0	%	25.3	%	26.3	%	26.3	%
Mid East	22.8	%	22.2	%	22.4	%	21.7	%
South East	21.9	%	24.9	%	22.8	%	26.3	%

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	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Segment profit:
Mid Atlantic	$	214,132	$	212,826	$	613,262	$	567,119
North East	56,246		48,787		157,476		125,779
Mid East	81,385		75,136		211,374		193,360
South East	95,089		107,666		280,936		339,723

Operating Activity:


	Three Months Ended September 30,						Nine Months Ended September 30,
	2024			2023			2024			2023
	Units	Average Price		Units	Average Price		Units	Average Price		Units	Average Price
New orders, net of cancellations:
Mid Atlantic	2,206	$	514.7	1,822	$	526.2	6,785	$	522.2	6,405	$	520.2
North East	536	$	616.4	448	$	561.3	1,541	$	617.2	1,353	$	563.7
Mid East	1,105	$	400.2	916	$	407.2	3,630	$	404.8	3,572	$	392.4
South East	1,803	$	354.1	1,560	$	372.8	5,810	$	363.9	5,209	$	366.3
Total	5,650	$	450.7	4,746	$	456.1	17,766	$	454.7	16,539	$	447.7


	Three Months Ended September 30,						Nine Months Ended September 30,
	2024			2023			2024			2023
	Units	Average Price		Units	Average Price		Units	Average Price		Units	Average Price
Settlements:
Mid Atlantic	2,229	$	514.9	2,199	$	521.2	6,394	$	515.9	6,024	$	522.2
North East	495	$	606.9	476	$	563.5	1,445	$	583.6	1,271	$	538.6
Mid East	1,219	$	411.1	1,209	$	387.5	3,343	$	404.5	3,265	$	392.8
South East	1,965	$	370.5	1,722	$	365.2	5,474	$	368.5	4,770	$	380.2
Total	5,908	$	453.2	5,606	$	448.0	16,656	$	451.0	15,330	$	451.8


	As of September 30,
	2024			2023
	Units	Average Price		Units	Average Price
Backlog:
Mid Atlantic	4,485	$	531.4	4,073	$	531.7
North East	1,124	$	646.5	967	$	587.5
Mid East	2,263	$	411.5	2,160	$	401.1
South East	3,467	$	369.8	3,171	$	379.3
Total	11,339	$	469.5	10,371	$	463.1


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
New order cancellation rate:
Mid Atlantic	12.4	%	12.8	%	12.2	%	13.0	%
North East	12.3	%	11.5	%	13.8	%	11.5	%
Mid East	16.5	%	15.3	%	15.1	%	13.3	%
South East	16.5	%	14.1	%	13.8	%	12.3	%

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	Three Months Ended September 30,		Nine Months Ended September 30,
	2024	2023	2024	2023
Average active communities:
Mid Atlantic	146	167	152	166
North East	32	36	32	37
Mid East	98	109	100	111
South East	146	119	143	110
Total	422	431	427	424

Homebuilding Inventory:


	September 30, 2024		December 31, 2023
Sold inventory:
Mid Atlantic	$	873,945	$	796,591
North East	251,437		220,511
Mid East	325,572		268,269
South East	517,526		412,873
Total (1)	$	1,968,480	$	1,698,244


	September 30, 2024		December 31, 2023
Unsold lots and housing units inventory:
Mid Atlantic	$	82,328	$	116,165
North East	29,772		18,804
Mid East	23,780		20,559
South East	90,070		60,953
Total (1)	$	225,950	$	216,481

(1) The reconciling items between segment inventory and consolidated inventory include certain consolidation adjustments necessary to convert the reportable segments’ results, which are predominantly maintained on a cash basis, to a full accrual basis for external financial statement presentation purposes. These consolidation adjustments are not allocated to our operating segments.

Lots Controlled and Land Deposits:


	September 30, 2024	December 31, 2023
Total lots controlled:
Mid Atlantic	48,800	46,000
North East	16,400	14,300
Mid East	22,700	22,200
South East	63,900	59,000
Total	151,800	141,500


	September 30, 2024		December 31, 2023
Contract land deposits, net:
Mid Atlantic	$	252,385	$	222,922
North East	80,283		61,182
Mid East	58,765		46,804
South East	287,399		253,292
Total	$	678,832	$	584,200

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Mid Atlantic

Three Months Ended September 30, 2024 and 2023

The Mid Atlantic segment profit was relatively flat quarter over quarter, as revenues remained flat due to a 1% increase in the number of units settled, offset by a 1% decline in the average settlement price. The segment’s gross profit margin percentage increased to 25.1% in the third quarter of 2024 from 24.5% in the third quarter of 2023. Gross profit margins were positively impacted by lower lumber costs quarter over quarter.

Segment New Orders increased 21%, while the average sales price of New Orders decreased 2% in the third quarter of 2024 compared to the third quarter of 2023. Despite a 12% decrease in the average number of active communities quarter over quarter, New Orders were favorably impacted by a higher sales absorption rate in the third quarter of 2024. The decrease in the average sales price of New Orders was primarily attributable to a shift to lower priced communities within certain markets in the segment quarter over quarter.

Nine Months Ended September 30, 2024 and 2023

The Mid Atlantic segment had an approximate $46,100, or 8%, increase in segment profit in the first nine months of 2024 compared to the first nine months of 2023. The increase in segment profit was driven by an increase in segment revenues of approximately $152,500, or 5%, coupled with an increase in gross profit margins. Segment revenues increased due to a 6% increase in the number of units settled which was primarily attributable to an 11% higher backlog unit balance entering 2024 compared to backlog entering 2023. The segment’s gross profit margin percentage increased to 25.2% in the first nine months of 2024 from 24.7% in the first nine months of 2023. Gross profit margins were positively impacted primarily by the improved leveraging of certain operating costs attributable to the increase in settlement activity, offset partially by higher lot costs and closing cost assistance year over year.

Segment New Orders increased 6% in the first nine months of 2024 compared to the first nine months of 2023, while the average sales price of New Orders remained relatively flat. Despite an 8% decrease in the average number of active communities year over year, New Orders were favorably impacted by a higher sales absorption rate year over year.

North East

Three Months Ended September 30, 2024 and 2023

The North East segment had an approximate $7,500, or 15%, increase in segment profit in the third quarter of 2024 compared to the third quarter of 2023. The increase in segment profit was driven by an increase in segment revenues of approximately $32,200, or 12%. Segment revenues increased due to a 4% increase in the number of units settled and a 8% increase in the average settlement price quarter over quarter. The increase in settlements was primarily attributable to a 9% higher backlog unit balance entering the third quarter of 2024 compared to backlog entering the third quarter of 2023, offset partially by a lower backlog turnover rate quarter over quarter. The increase in the average settlement price was primarily attributable to a 9% higher average price of units in backlog entering the third quarter of 2024 compared to the average price of units in backlog entering the third quarter of 2023. The segment's gross profit margin percentage increased to 26.0% in the third quarter of 2024 from 25.3% in the third quarter of 2023. Gross profit margins were positively impacted primarily by the improved leveraging of certain operating costs attributable to the increase in settlement activity, offset partially by higher lot costs and closing cost assistance. In addition, margins were favorably impacted by lower lumber costs quarter over quarter.

Segment New Orders and the average sales price of New Orders increased 20% and 10%, respectively, in the third quarter of 2024 compared to the third quarter of 2023. Despite a 12% decrease in the average number of active communities quarter over quarter, New Orders were favorably impacted by a higher sales absorption rate quarter over quarter. The increase in the average sales price of New Orders was primarily attributable to a shift to higher priced communities in certain markets quarter over quarter.

Nine Months Ended September 30, 2024 and 2023

The North East segment had an approximate $31,700, or 25%, increase in segment profit in the first nine months of 2024 compared to the first nine months of 2023. Segment profits were favorably impacted by an increase in segment revenue of approximately $158,900, or 23%. Segment revenues were favorably impacted by a 14%

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increase in the number of units settled and a 8% increase in the average settlement price year over year. The increase in settlements was primarily attributable to a 16% higher backlog unit balance entering 2024 compared to backlog entering 2023, coupled with a higher backlog turnover rate year over year. The increase in the average settlement price was primarily attributable to a 9% higher average sales price of units in backlog entering 2024 compared to backlog entering 2023. The segment's gross profit margin percentage was flat year over year.

Segment New Orders and the average sales price of New Orders increased 14% and 10%, respectively, in the first nine months of 2024 compared to the first nine months of 2023. Despite an 11% decrease in the average number of active communities year over year, New Orders were favorably impacted by a higher sales absorption rate year over year. The increase in the average sales price of New Orders was primarily attributable to a shift to higher priced communities in certain markets year over year.

Mid East

Three Months Ended September 30, 2024 and 2023

The Mid East segment had an approximate $6,200, or 8%, increase in segment profit in the third quarter of 2024 compared to the third quarter of 2023, due primarily to an increase in segment revenues of approximately $32,500, or 7%, coupled with an increase in gross profit margins to 22.8% in the the third quarter of 2024 from 22.2% in the third quarter of 2023. Segment revenues were favorably impacted by a 6% increase in the average price of homes settled quarter over quarter, due to a 6% higher average sales price of units in backlog entering the third quarter of 2024 compared to backlog entering the third quarter of 2023. The segment's gross profit margin percentage was favorably impacted by the higher average settlement prices and lower lumber costs quarter over quarter, offset partially by higher lot costs and closing cost assistance.

Segment New Orders increased 21% in the third quarter of 2024 compared to the third quarter of 2023, while the average sales price of New Orders decreased 2% quarter over quarter. Despite a 10% decrease in the average number of active communities quarter over quarter, New Orders were favorably impacted by a higher sales absorption rate in the third quarter of 2024. The decrease in the average sales price of New Orders was primarily attributable to a shift to lower priced markets within the segment.

Nine Months Ended September 30, 2024 and 2023

The Mid East segment had an approximate $18,000, or 9%, increase in segment profit in the first nine months of 2024 compared to the first nine months of 2023, due primarily to an increase in segment revenues of approximately $69,300, or 5%, coupled with an increase in gross profit margins to 22.4% in the first nine months of 2024 from 21.7% in the first nine months of 2023. Segment revenues increased due to a 3% increase in the average price of units settled and a 2% increase in the number of units settled year over year. The increase in the average settlement price was attributable primarily to the 6% increase in the average settlement price in the third quarter of 2024 as discussed above. The increase in settlements was attributable primarily to a 7% higher backlog unit balance entering 2024 compared to the backlog entering 2023. Gross profit margin was favorably impacted by the improved leveraging of certain operating costs as settlement activity increased, offset partially by higher lot costs and closing cost assistance year over year.

Segment New Orders increased 2% in the first nine months of 2024 compared to the first nine months of 2023, while the average sales price of New Orders increased 3% year over year. Despite a 10% decrease in the average number of active communities year over year, New Orders were favorably impacted by a higher sales absorption rate year over year. The increase in the average sales price of New Orders was primarily attributable to a shift to higher priced communities within certain markets year over year.

South East

Three Months Ended September 30, 2024 and 2023

The South East segment had an approximate $12,600, or 12%, decrease in segment profit in the third quarter of 2024 compared to the third quarter of 2023. The decrease in segment profit was primarily driven by a decrease in gross profit margins to 21.9% in the third quarter of 2024 from 24.9% in the third quarter of 2023. Gross profit margins were negatively impacted primarily by higher lot costs and closing cost assistance. Segment revenues in the

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third quarter of 2024 were higher by approximately $99,200, or 16%, due to primarily to a 14% increase in the number of units settled. The increase in settlements is attributable primarily to a 9% higher backlog unit balance entering the third quarter of 2024 compared to the backlog entering the third quarter of 2023, coupled with a higher backlog turnover rate quarter over quarter.

Segment New Orders increased 16% in the third quarter of 2024 compared to the third quarter of 2023, while the average sales price of New Orders decreased 5% quarter over quarter. New Orders were favorably impacted by a 22% increase in the average number of active communities, offset partially by a 6% lower absorption rate within the segment quarter over quarter. The decrease in the average sales price of New Orders was primarily attributable to a shift to lower priced communities in certain markets within the segment quarter over quarter.

Nine Months Ended September 30, 2024 and 2023

The South East segment had an approximate $58,800, or 17%, decrease in segment profit in the first nine months of 2024 compared to the first nine months of 2023 due primarily to a decrease in gross profit margins to 22.8% in the first nine months of 2024 from 26.3% in the first nine months of 2023. Gross profit margins were negatively impacted primarily by higher lot costs and closing cost assistance. Segment revenues in the third quarter of 2024 were higher by approximately $203,500, or 11%, due to a 15% increase in the number of units settled, partially offset by a 3% decrease in the average price of units settled year over year. The increase in settlements was attributable primarily to a 15% higher backlog balance entering 2024 compared to the backlog entering 2023, coupled with a higher backlog turnover rate year over year. The decrease in the average settlement price was attributable primarily to a 7% lower average sales price of units in backlog entering 2024 compared to backlog entering 2023.

Segment New Orders increased 12% in the first nine months of 2024 compared to the first nine months of 2023, while the average sales price of New Orders decreased 1% year over year. The increase in New Orders was primarily attributable to a 30% increase in the average number of active communities, offset partially by a 14% lower absorption rate within the segment year over year.

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Homebuilding Segment Reconciliations to Consolidated Homebuilding Operations

In addition to the corporate capital allocation and contract land deposit impairments discussed above, the other reconciling items between homebuilding segment profit and homebuilding consolidated income before tax include unallocated corporate overhead (which includes all management incentive compensation), equity-based compensation expense, consolidation adjustments and external corporate interest expense. Our overhead functions, such as accounting, treasury and human resources, are centrally performed and the costs are not allocated to our operating segments. Consolidation adjustments consist of such items to convert the reportable segments’ results, which are predominantly maintained on a cash basis, to a full accrual basis for external financial statement presentation purposes, and are not allocated to our operating segments. External corporate interest expense primarily consists of interest charges on our Senior Notes, and is not charged to the operating segments because the charges are included in the corporate capital allocation discussed above.


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Homebuilding consolidated gross profit:
Mid Atlantic	$	288,131	$	281,230	$	830,097	$	775,983
North East	78,251		67,861		221,829		180,389
Mid East	114,087		103,918		302,977		278,983
South East	159,431		156,846		459,137		476,319
Consolidation adjustments and other	(13,347)		380		(27,248)		(22,393)
Homebuilding consolidated gross profit	$	626,553	$	610,235	$	1,786,792	$	1,689,281


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Homebuilding consolidated income before taxes:
Mid Atlantic	$	214,132	$	212,826	$	613,262	$	567,119
North East	56,246		48,787		157,476		125,779
Mid East	81,385		75,136		211,374		193,360
South East	95,089		107,666		280,936		339,723
Reconciling items:
Contract land deposit reserve adjustment (1)	(3,079)		(3,783)		5,712		6,696
Equity-based compensation expense (2)	(18,012)		(24,665)		(51,410)		(69,356)
Corporate capital allocation (3)	86,489		74,171		246,044		215,862
Unallocated corporate overhead	(36,780)		(38,376)		(122,300)		(130,701)
Consolidation adjustments and other	2,575		16,947		6,666		10,948
Corporate interest expense	(6,787)		(6,583)		(20,052)		(20,126)
Corporate interest income	32,409		38,680		106,173		101,963
Reconciling items sub-total	56,815		56,391		170,833		115,286
Homebuilding consolidated income before taxes	$	503,667	$	500,806	$	1,433,881	$	1,341,267

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	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Corporate capital allocation charge:
Mid Atlantic	$	35,976	$	33,994	$	104,872	$	102,509
North East	10,578		8,944		30,456		24,542
Mid East	11,929		9,974		32,850		29,453
South East	28,006		21,259		77,866		59,358
Total	$	86,489	$	74,171	$	246,044	$	215,862

Mortgage Banking Segment

Three and Nine Months Ended September 30, 2024 and 2023

We conduct our mortgage banking activity through NVR Mortgage Finance, Inc. (“NVRM”), a wholly owned subsidiary. NVRM focuses exclusively on serving the homebuilding segment's customers. NVRM sells almost all of the mortgage loans it closes to investors in the secondary markets on a servicing-released basis, typically within 30 days from the loan closing. The following table summarizes the results of our mortgage banking operations and certain statistical data for the three and nine months ended September 30, 2024 and 2023:



	Three Months Ended September 30,						Nine Months Ended September 30,
	2024			2023			2024			2023
Loan closing volume:
Total principal	$	1,656,507		$	1,621,599		$	4,564,597		$	4,240,529

Loan volume mix:
Adjustable rate mortgages	2		%	2		%	2		%	3		%
Fixed-rate mortgages	98		%	98		%	98		%	97		%

Operating profit:
Segment profit	$	36,156		$	39,921		$	112,046		$	107,191
Equity-based compensation expense	(1,211)			(1,387)			(3,055)			(4,132)
Mortgage banking income before tax	$	34,945		$	38,534		$	108,991		$	103,059

Capture rate:	86		%	89		%	86		%	86		%

Mortgage banking fees:
Net gain on sale of loans	$	43,896		$	46,767		$	135,046		$	127,898
Title services	11,316			9,753			31,875			30,068
Servicing fees	99			96			242			155
	$	55,311		$	56,616		$	167,163		$	158,121

Loan closing volume for the three and nine months ended September 30, 2024 increased by approximately $34,900, or 2%, and $324,100, or 8%, respectively, from the same periods in 2023. The increase in loan closing volume during both the three and nine months ended September 30, 2024 was primarily attributable to the 5% and 9% increases in the homebuilding segment’s number of units settled for the three and nine months ended September 30, 2024, respectively, when compared to the same periods in 2023. The favorable impact of higher

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homebuilding settlements on loan closing volume during the third quarter of 2024 was partially offset by a lower capture rate quarter over quarter.

Segment profit for the three months ended September 30, 2024 decreased by approximately $3,800, or 9%, from the same period in 2023. This decrease was attributable to an increase in general and administrative expenses and a decrease in mortgage banking fees. General and administrative expenses increased by approximately $2,400, or 11%, from the same period in 2023, primarily due to an increase in personnel costs. Mortgage banking fees decreased by approximately $1,300, or 2%, which was primarily due to a decrease in gains on sales of loans.

Segment profit for the nine months ended September 30, 2024 increased by approximately $4,900, or 5%, from the same period in 2023. This increase was primarily attributable to an increase of approximately $9,000, or 6%, in mortgage banking fees due to an increase in gains on sales of loans. This increase was partially offset by an increase in general and administrative expenses of approximately $6,600, or 10%, during the nine months ended September 30, 2024, which was primarily due to an increase in personnel costs.

Seasonality

We historically have experienced variability in our quarterly results, generally having higher New Order activity in the first half of the year and higher home settlements, revenue and net income in the second half of the year. However, in recent years our typical seasonal trends have been affected by significant changes in market conditions. As a result, our quarterly results of operations are not necessarily indicative of the results that may be expected for the full year.

Effective Tax Rate

Our effective tax rate for the three and nine months ended September 30, 2024 was 20.3% and 20.6%, respectively, compared to 19.7% and 18.2% for the three and nine months ended September 30, 2023, respectively. The increase in the effective tax rate in the three and nine month periods of 2024 compared to the same periods in 2023 was primarily attributable to a lower income tax benefit recognized for excess tax benefits from stock option exercises, which totaled approximately $23,100 and $73,700 for the three and nine months ended September 30, 2024, respectively, and approximately $31,900 and $111,000 for the three and nine months ended September 30, 2023, respectively.

We expect to experience volatility in our effective tax rate in future quarters as the amount of the excess tax benefit from equity-based awards is dependent on our stock price when awards are exercised as well as on the timing of exercises, which historically has varied from quarter to quarter.

Liquidity and Capital Resources

We fund our operations primarily from our current cash holdings and cash flows generated by operating activities. In addition, we have available a short-term unsecured working capital revolving credit facility and revolving mortgage repurchase facility, as further described below. As of September 30, 2024, we had approximately $2,500,000 in cash and cash equivalents, approximately $282,900 in unused committed capacity under our revolving credit facility and $150,000 in unused committed capacity under our revolving mortgage repurchase facility.

Material Cash Requirements

We believe that our current cash holdings, cash generated from operations, and cash available under our short-term unsecured credit agreement and revolving mortgage repurchase facility, as well as the public debt and equity markets, will be sufficient to satisfy both our short term and long term cash requirements for working capital to support our daily operations and meet commitments under our contractual obligations with third parties. Our material contractual obligations primarily consist of the following:

(i) Payments due to service our debt and interest on that debt. Future interest payments on our outstanding senior notes total $158,550, with $27,000 due within the next twelve months.

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(ii) Payment obligations totaling approximately $485,000 under existing LPAs for deposits to be paid to land developers, assuming that contractual development milestones are met by the developers and we exercise our option to acquire finished lots under those LPAs. We expect to make the majority of these payments within the next three years.

(iii) Obligations under operating and finance leases related primarily to office space and our production facilities. See Note 13 of this Quarterly Report on Form 10-Q for additional discussion of our leases.

In addition to funding growth in our homebuilding and mortgage banking operations, we historically have used a substantial portion of our excess liquidity to repurchase outstanding shares of our common stock in open market and privately negotiated transactions. This ongoing repurchase program assists us in accomplishing our primary objective, creating increases in shareholder value. See Part II, Item 2, Unregistered Sales of Equity Securities and Use of Proceeds, of this Quarterly Report on Form 10-Q for further discussion of repurchase activity during the third quarter of 2024. For the nine months ended September 30, 2024, we repurchased 192,655 shares of our common stock at an aggregate purchase price of $1,493,362. As of September 30, 2024, we had approximately $682,507 available under a Board approved repurchase authorization.

Capital Resources

Senior Notes

As of September 30, 2024, we had Senior Notes with an aggregate principal balance of $900,000, which mature in May 2030. The Senior Notes are senior unsecured obligations and rank equally in right of payment with any of our existing and future unsecured senior indebtedness, will rank senior in right of payment to any of our future indebtedness that is by its terms expressly subordinated to the Senior Notes and will be effectively subordinated to any of our existing and future secured indebtedness to the extent of the value of the collateral securing such indebtedness. The indenture governing the Senior Notes does not contain any financial covenants; however, it does contain, among other items, and subject to certain exceptions, covenants that restrict our ability to create, incur, assume or guarantee secured debt, enter into sale and leaseback transactions and conditions related to mergers and/or the sale of assets. We were in compliance with all covenants under the Senior Notes as of September 30, 2024.

Credit Agreement

We have an unsecured revolving credit agreement (the "Credit Agreement") with a group of lenders which may be used for working capital and general corporate purposes. The Credit Agreement provides for aggregate revolving loan commitments of $300,000 (the "Facility"). Under the Credit Agreement, we may request increases of up to $300,000 to the Facility in the form of revolving loan commitments or term loans to the extent that new or existing lenders agree to provide additional revolving loan or term loan commitments. In addition, the Credit Agreement provides for a $100,000 sublimit for the issuance of letters of credit of which there was approximately $17,100 outstanding as of September 30, 2024. The Credit Agreement termination date is February 12, 2026. There were no borrowings outstanding under the Credit Agreement as of September 30, 2024.

Repurchase Agreement

NVRM has an unsecured revolving mortgage repurchase facility (the "Repurchase Agreement") which provides for aggregate borrowings up to $150,000 and is non-recourse to NVR. In July 2024, NVRM entered into the Second Amendment to the Repurchase Agreement, which extended the term of the Repurchase Agreement through July 14, 2025. All other terms and conditions under the amended Repurchase Agreement remained materially consistent. As of September 30, 2024, there were no borrowing base limitations reducing the amount available under the Repurchase Agreement. There were no borrowings outstanding under the Repurchase Agreement as of September 30, 2024.

For additional information regarding the Senior Notes, Credit Agreement and Repurchase Agreement, see Part II, Item 7 of our Annual Report on Form 10-K for the year ended December 31, 2023.

Cash Flows

For the nine months ended September 30, 2024, cash, restricted cash, and cash equivalents decreased by $646,777. Net cash provided by operating activities was $737,412 for the nine months ended September 30, 2024,

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due primarily to cash provided by earnings. Cash was primarily used to fund the increase in inventory of $307,247, attributable to an increase in units under construction as of September 30, 2024 compared to December 31, 2023 and a net use of approximately $166,000 from mortgage loan activity.

Net cash used in investing activities for the nine months ended September 30, 2024 was $19,797. Cash was used primarily for purchases of property, plant and equipment of $23,621.

Net cash used in financing activities was $1,364,392 for the nine months ended September 30, 2024. Cash was used to repurchase 192,655 shares of our common stock at an aggregate purchase price of $1,493,362 under our ongoing common stock repurchase program, discussed above. Cash was provided from stock option exercise proceeds totaling $130,778.

Critical Accounting Estimates

There have been no material changes to our critical accounting estimates as previously disclosed in Part II, Item 7 of our Annual Report on Form 10-K for the year ended December 31, 2023.

Item 3. Quantitative and Qualitative Disclosure about Market Risk

There have been no material changes in our market risks during the nine months ended September 30, 2024. For additional information regarding our market risks, see Part II, Item 7A of our Annual Report on Form 10-K for the year ended December 31, 2023.

Item 4. Controls and Procedures

As of the end of the period covered by this report, an evaluation was performed under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures, as defined in Exchange Act Rule 13a-15. Based on that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that the design and operation of these disclosure controls and procedures were effective. There have been no changes in our internal control over financial reporting in the last fiscal quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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PART II. OTHER INFORMATION

Item 1. Legal Proceedings

Item 1A. Risk Factors

There have been no material changes to the risk factors as previously disclosed in Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2023.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

During the quarter ended September 30, 2024, we fully utilized the remaining amount available under our $750 million share repurchase authorization that was publicly announced on February 14, 2024. On May 7, 2024, we publicly announced that our Board of Directors had approved an additional repurchase authorization in the amount of up to $750 million. The share repurchase authorizations authorized the repurchase of our outstanding common stock in one or more open market and/or privately negotiated transactions, with no expiration date. Repurchase activity is typically executed in accordance with the safe-harbor provisions of Rule 10b-18 and Rule 10b5-1 promulgated under the Securities Exchange Act of 1934, as amended. We repurchased the following shares of our common stock during the third quarter of 2024:


Period (1)	Total Number of Shares Purchased	Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs	Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs (in thousands)
July 1 - 31, 2024	20,127	$	7,707.35	20,127	$	884,831
August 1 - 31, 2024	11,157	$	8,807.67	11,157	$	786,564
September 1 - 30, 2024	11,345	$	9,172.09	11,345	$	682,507
Total	42,629	$	8,385.15	42,629

(1) All of the shares repurchased in July and August 2024 were repurchased under our February 14, 2024 repurchase authorization. Of the shares repurchased in September 2024, 4,018 shares were repurchased under the February 14, 2024 share repurchase authorization, which fully utilized the February 2024 authorization. The remaining 7,327 shares were repurchased under the May 7, 2024 share repurchase authorization.

Item 5. Other Events

During the quarter ended September 30, 2024, no director or officer of the Company adopted or terminated a "Rule 10b5-1 trading arrangement" or "non-Rule 10b5-1 trading arrangement", as each term is defined in Item 408(a) of Regulation S-K.

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Item 6. Exhibits

Exhibit Number

Exhibit Description

31.1

Certification of NVR’s Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. Filed herewith.

31.2

Certification of NVR’s Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. Filed herewith.

Certification of NVR’s Chief Executive Officer and Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. Furnished herewith.

101.INS

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101.SCH

XBRL Taxonomy Extension Schema Document

101.CAL

XBRL Taxonomy Extension Calculation Linkbase Document

101.DEF

XBRL Taxonomy Extension Definition Linkbase Document

101.LAB

XBRL Taxonomy Extension Label Linkbase Document

101.PRE

XBRL Taxonomy Extension Presentation Linkbase Document

104

Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

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SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.


		NVR, Inc.

Date: November 5, 2024	By:	Daniel D. Malzahn
		Daniel D. Malzahn
		Senior Vice President, Chief Financial Officer and Treasurer

Exhibit 31.1

SARBANES-OXLEY ACT SECTION 302 CERTIFICATIONS

I, Eugene J. Bredow, certify that:

1.I have reviewed this report on Form 10-Q of NVR, Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.



Date: November 5, 2024	By:	/s/ Eugene J. Bredow
		Eugene J. Bredow
		President and Chief Executive Officer

Exhibit 31.2

SARBANES-OXLEY ACT SECTION 302 CERTIFICATIONS

I, Daniel D. Malzahn, certify that:

1.I have reviewed this report on Form 10-Q of NVR, Inc.;

b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.



Date: November 5, 2024	By:	/s/ Daniel D. Malzahn
		Daniel D. Malzahn
		Senior Vice President, Chief Financial Officer and Treasurer

Exhibit 32

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report on Form 10-Q of NVR, Inc. for the period ended September 30, 2024 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), each of the undersigned officers of NVR, Inc., hereby certifies pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

1.The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2.The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of NVR, Inc.



Date: November 5, 2024	By:	/s/ Eugene J. Bredow
		Eugene J. Bredow
		President and Chief Executive Officer


	By:	/s/ Daniel D. Malzahn
		Daniel D. Malzahn
		Senior Vice President, Chief Financial Officer and Treasurer

Cover - shares	9 Months Ended
Cover - shares	Sep. 30, 2024	Oct. 31, 2024
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2024
Document Transition Report	false
Entity File Number	1-12378
Entity Registrant Name	NVR, Inc.
Entity Incorporation, State or Country Code	VA
Entity Tax Identification Number	54-1394360
Entity Address, Address Line One	11700 Plaza America Drive
Entity Address, Address Line Two	Suite 500
Entity Address, City or Town	Reston
Entity Address, State or Province	VA
Entity Address, Postal Zip Code	20190
City Area Code	703
Local Phone Number	956-4000
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Title of 12(b) Security	Common stock, par value $0.01 per share
Trading Symbol	NVR
Security Exchange Name	NYSE
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		3,063,876
Amendment Flag	false
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q3
Entity Central Index Key	0000906163
Current Fiscal Year End Date	--12-31

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
ASSETS
Contract land deposits, net	$ 668,436	$ 576,551
Total assets	6,488,159	6,601,757
Inventory:
Land under development	63,339
LIABILITIES AND SHAREHOLDERS' EQUITY
Total liabilities	2,216,911	2,237,032
Commitments and contingencies
Shareholders' equity:
Common stock, $0.01 par value; 60,000,000 shares authorized; 20,555,330 shares issued as of both September 30, 2024 and December 31, 2023	206	206
Additional paid-in capital	2,989,776	2,848,528
Deferred compensation trust – 106,697 shares of NVR, Inc. common stock as of both September 30, 2024 and December 31, 2023	(16,710)	(16,710)
Deferred compensation liability	16,710	16,710
Retained earnings	14,589,521	13,365,025
Less treasury stock at cost – 17,490,540 and 17,360,454 shares as of September 30, 2024 and December 31, 2023, respectively	(13,308,255)	(11,849,034)
Total shareholders' equity	4,271,248	4,364,725
Total liabilities and shareholders' equity	6,488,159	6,601,757
Mortgage Banking
ASSETS
Cash and cash equivalents	36,727	36,422
Restricted cash	11,247	11,067
Mortgage loans held for sale, net	379,232	222,560
Property, plant and equipment, net	7,086	6,348
Operating lease right-of-use assets	21,499	23,541
Goodwill	7,347	7,347
Other assets	89,912	152,385
Total assets	553,050	459,670
LIABILITIES AND SHAREHOLDERS' EQUITY
Operating lease liabilities	23,428	25,475
Accounts payable and other liabilities	67,029	127,511
Total liabilities	90,457	152,986
Home Building Segment
ASSETS
Cash and cash equivalents	2,474,219	3,126,472
Restricted cash	46,474	41,483
Receivables	35,563	29,000
Contract land deposits, net	668,436	576,551
Property, plant and equipment, net	85,998	63,716
Operating lease right-of-use assets	74,415	70,384
Goodwill	41,580	41,580
Other assets	251,027	242,751
Total assets	5,935,109	6,142,087
Inventory:
Lots and housing units, covered under sales agreements with customers	1,946,533	1,674,686
Unsold lots and housing units	223,828	214,666
Land under development	63,339	36,895
Building materials and other	23,697	23,903
Total Inventory	2,257,397	1,950,150
LIABILITIES AND SHAREHOLDERS' EQUITY
Accounts payable	370,131	347,738
Accrued expenses and other liabilities	406,319	413,043
Customer deposits	358,609	334,441
Operating lease liabilities	79,796	75,797
Senior notes	911,599	913,027
Total liabilities	$ 2,126,454	$ 2,084,046

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2024	Dec. 31, 2023
Statement of Financial Position [Abstract]
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	60,000,000	60,000,000
Common stock, shares issued (in shares)	20,555,330	20,555,330
Deferred compensation trust (in shares)	106,697	106,697
Treasury stock (in shares)	17,490,540	17,360,454

Condensed Consolidated Statements of Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Revenues	$ 2,732,951	$ 2,569,025	$ 7,678,871	$ 7,085,632
Income before taxes	538,612	539,340	1,542,872	1,444,326
Income tax expense	(109,289)	(106,183)	(318,376)	(262,790)
Net income	$ 429,323	$ 433,157	$ 1,224,496	$ 1,181,536
Basic earnings per share (USD per share)	$ 139.65	$ 132.92	$ 391.37	$ 363.14
Diluted earnings per share (USD per share)	$ 130.50	$ 125.26	$ 367.20	$ 341.97
Basic weighted average shares outstanding (in shares)	3,074,230	3,258,863	3,128,709	3,253,623
Diluted weighted average shares outstanding (in shares)	3,289,924	3,458,142	3,334,693	3,455,100
Home Building Segment
Revenues	$ 2,677,640	$ 2,512,409	$ 7,511,708	$ 6,927,511
Other income	33,746	39,914	110,796	107,119
Cost of Goods and Services Sold	2,051,087	1,902,174	5,724,916	5,238,230
Selling, general and administrative	(149,777)	(142,715)	(443,493)	(434,876)
Operating Income	510,522	507,434	1,454,095	1,361,524
Interest expense	(6,855)	(6,628)	(20,214)	(20,257)
Income before taxes	503,667	500,806	1,433,881	1,341,267
Mortgage Banking
Revenues	55,311	56,616	167,163	158,121
Interest income	4,728	5,067	13,492	11,908
Other income	1,414	1,169	3,918	3,260
General and administrative	(26,317)	(24,050)	(75,026)	(69,538)
Interest expense	(191)	(268)	(556)	(692)
Income before taxes	$ 34,945	$ 38,534	$ 108,991	$ 103,059

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Cash flows from operating activities:
Net income	$ 1,224,496	$ 1,181,536
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	13,422	12,585
Equity-based compensation expense	54,465	73,488
Contract land deposit recoveries, net	(4,868)	(6,217)
Gain on sale of loans, net	(135,799)	(127,898)
Mortgage loans closed	(4,568,806)	(4,243,040)
Mortgage loans sold and principal payments on mortgage loans held for sale	4,538,919	4,347,960
Net change in assets and liabilities:
Increase in inventory	(307,247)	(215,498)
Increase in contract land deposits	(87,017)	(27,873)
Decrease (increase) in receivables	46,993	(17,628)
Decrease in accounts payable and accrued expenses	(59,417)	(5,669)
Increase in customer deposits	24,168	41,507
Other, net	(3,397)	(12,966)
Net Cash Provided by (Used in) Operating Activities	737,412	1,002,287
Cash flows from investing activities:
Investments in and advances to unconsolidated joint ventures	(1,640)	(1,224)
Distribution of capital from unconsolidated joint ventures	2,715	180
Purchase of property, plant and equipment	(23,621)	(18,531)
Proceeds from the sale of property, plant and equipment	2,749	2,221
Net Cash Provided by (Used in) Investing Activities	(19,797)	(17,354)
Cash flows from financing activities:
Purchase of treasury stock	(1,493,362)	(795,387)
Principal payments on finance lease liabilities	(1,808)	(1,233)
Proceeds from the exercise of stock options	130,778	207,163
Net Cash Provided by (Used in) Financing Activities	(1,364,392)	(589,457)
Net (decrease) increase in cash, restricted cash, and cash equivalents	(646,777)	395,476
Cash, restricted cash, and cash equivalents, beginning of the period	3,215,444	2,574,518
Cash, restricted cash, and cash equivalents, end of the period	2,568,667	2,969,994
Supplemental disclosures of cash flow information:
Interest paid during the period, net of interest capitalized	15,094	15,285
Income taxes paid during the period, net of refunds	307,263	312,631
Distribution of earnings from unconsolidated joint ventures	$ 1,500	$ 2,000

Commitments and Contingencies	9 Months Ended
Commitments and Contingencies	Sep. 30, 2024
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies We are involved in various litigation arising in the ordinary course of business. In the opinion of management, and based on advice of legal counsel, this litigation is not expected to have a material adverse effect on our financial position, results of operations or cash flows. Legal costs incurred in connection with outstanding litigation are expensed as incurred.

Significant Accounting Policies	9 Months Ended
Significant Accounting Policies	Sep. 30, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Significant Accounting Policies	Significant Accounting Policies Basis of Presentation The accompanying unaudited, condensed consolidated financial statements include the accounts of NVR, Inc. (“NVR”, the “Company”, "we", "us" or "our") and its subsidiaries and certain other entities in which the Company is deemed to be the primary beneficiary (see Notes 2 and 3 to the accompanying condensed consolidated financial statements). Intercompany accounts and transactions have been eliminated in consolidation. The statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. Because the accompanying condensed consolidated financial statements do not include all of the information and footnotes required by GAAP, they should be read in conjunction with the financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2023. In the opinion of management, all adjustments (consisting only of normal recurring accruals except as otherwise noted herein) considered necessary for a fair presentation have been included. Operating results for the three and nine months ended September 30, 2024 are not necessarily indicative of the results that may be expected for the year ending December 31, 2024. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. For the three and nine months ended September 30, 2024 and 2023, comprehensive income equaled net income; therefore, a separate statement of comprehensive income is not included in the accompanying condensed consolidated financial statements. Revenue Recognition Homebuilding revenue is recognized on the settlement date at the contract sales price, when control is transferred to our customers. Our contract liabilities, which consist of deposits received from customers on homes not settled, were $358,609 and $334,441 as of September 30, 2024 and December 31, 2023, respectively. We expect that substantially all of the customer deposits held as of December 31, 2023 will be recognized in revenue in 2024. Our contract assets consist of prepaid sales compensation and totaled approximately $25,100 and $17,900 as of September 30, 2024 and December 31, 2023, respectively. Prepaid sales compensation is included in homebuilding “Other assets” on the accompanying condensed consolidated balance sheets. Recently Issued Accounting Pronouncements In December 2023, the Financial Accounting Standards Board ("FASB") issued ASU 2023-09, "Income Taxes - Improvements to Income Tax Disclosures." The amendments in the ASU require disclosure of specific categories in the rate reconciliation and for the entity to provide additional information for reconciling items that meet a quantitative threshold. The ASU will be effective for our fiscal year ending December 31, 2025. The amendments in the ASU are to be applied on a prospective basis and early adoption is permitted. We are currently evaluating the impact of the adoption of ASU 2023-09 and do not expect it to have a material impact on our consolidated financial statements and related disclosures. In November 2023, the FASB issued ASU 2023-07, "Segment Reporting - Improvements to Reportable Segment Disclosures." The amendments in the ASU are intended to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses that are regularly provided to the chief operating decision maker and included within each reported measure of segment profit or loss. The amendments also expand interim segment disclosure requirements. The ASU will be effective for our fiscal year ending December 31, 2024 and for interim periods starting in the first quarter of fiscal year 2025. The amendments in this ASU are required to be applied on a retrospective basis and early adoption is permitted. We do not expect the adoption of ASU 2023-07 to have a material impact on our consolidated financial statements and related disclosures.

Variable Interest Entities ("VIEs")

9 Months Ended

Sep. 30, 2024

Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure [Abstract]

Variable Interest Entities ("VIEs")

Fixed Price Finished Lot Purchase Agreements (“LPAs”)


	September 30, 2024		December 31, 2023
Contract land deposits	$	716,122	$	629,948
Loss reserve on contract land deposits	(47,686)		(53,397)
Contract land deposits, net	668,436		576,551
Contingent obligations in the form of letters of credit	10,396		7,769
Total risk of loss	$	678,832	$	584,320

Joint Ventures Joint Ventures	9 Months Ended
Joint Ventures Joint Ventures	Sep. 30, 2024
Equity Method Investments and Joint Ventures [Abstract]
Joint Ventures	Joint Ventures On a limited basis, we acquire finished lots using joint venture limited liability corporations (“JVs”). The JVs are typically structured such that we are a non-controlling member and are at risk only for the amount we have invested, or have committed to invest, in addition to any deposits placed under LPAs with the joint venture. We are not a borrower, guarantor or obligor on any debt of the JVs, as applicable. We enter into LPAs to purchase lots from these JVs, and as a result have a variable interest in these JVs. We determined that we are not the primary beneficiary in any of the JVs because we and the other JV partner either share power or the other JV partner has the controlling financial interest. As of September 30, 2024, we had an aggregate investment totaling approximately $27,800 in three JVs that are expected to produce approximately 5,150 finished lots, of which approximately 4,800 lots were controlled by us and the remaining approximately 350 lots were either under contract with unrelated parties or not currently under contract. We had additional funding commitments totaling approximately $9,800 to one of the JVs as of September 30, 2024. As of December 31, 2023, our aggregate investment in JVs totaled approximately $29,200. Investments in JVs for the respective periods are reported in the homebuilding "Other assets" line item on the accompanying condensed consolidated balance sheets. None of the JVs had any indicators of impairment as of September 30, 2024. We recognize income from the JVs as a reduction to the lot cost of the lots purchased from the respective JVs when the homes are settled, based on the expected total profitability and the total number of lots expected to be produced by the respective JVs. We classify distributions received from unconsolidated JVs using the cumulative earnings approach. As a result, distributions received up to the amount of cumulative earnings recognized by us are reported as distributions of earnings and those in excess of that amount are reported as a distribution of capital. These distributions are classified within the accompanying condensed consolidated statements of cash flows as cash flows from operating activities and investing activities, respectively.

Land Under Development	9 Months Ended
Land Under Development	Sep. 30, 2024
Real Estate [Abstract]
Land Under Development	Land Under Development On a limited basis, we directly acquire raw land parcels already zoned for its intended use to develop into finished lots. Land under development includes the land acquisition costs, direct improvement costs, capitalized interest, where applicable, and real estate taxes. During the first quarter of 2024, we purchased a raw land parcel for approximately $20,000, which is expected to produce approximately 850 lots. As of September 30, 2024, we owned land with a carrying value of $63,339 that will be developed into approximately 2,600 finished lots. As of December 31, 2023, the carrying value of land under development was $36,895. None of the raw parcels had any indicators of impairment as of September 30, 2024

Capitalized Interest

9 Months Ended

Sep. 30, 2024

Capitalized Interest Costs, Including Allowance for Funds Used During Construction [Abstract]

Capitalized Interest

The following table reflects the changes in our capitalized interest during the three and nine months ended September 30, 2024 and 2023:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Interest capitalized, beginning of period	$	206	$	189	$	151	$	570
Interest incurred	7,121		6,921		20,963		20,750
Interest charged to interest expense	(7,046)		(6,896)		(20,770)		(20,949)
Interest charged to cost of sales	(14)		(22)		(77)		(179)
Interest capitalized, end of period	$	267	$	192	$	267	$	192

Earnings per Share

9 Months Ended

Sep. 30, 2024

Earnings Per Share [Abstract]

Earnings per Share

The following weighted average shares and share equivalents were used to calculate basic and diluted earnings per share ("EPS") for the three and nine months ended September 30, 2024 and 2023:


	Three Months Ended September 30,		Nine Months Ended September 30,
	2024	2023	2024	2023
Weighted average number of shares outstanding used to calculate basic EPS	3,074,230	3,258,863	3,128,709	3,253,623
Dilutive securities:
Stock options and restricted share units	215,694	199,279	205,984	201,477
Weighted average number of shares and share equivalents outstanding used to calculate diluted EPS	3,289,924	3,458,142	3,334,693	3,455,100


	Three Months Ended September 30,		Nine Months Ended September 30,
	2024	2023	2024	2023
Anti-dilutive securities	4,520	4,188	5,060	15,464

Shareholders' Equity

9 Months Ended

Sep. 30, 2024

Equity [Abstract]

Shareholders' Equity

Shareholders’ Equity

A summary of changes in shareholders’ equity for the three months ended September 30, 2024 is presented below:


	Common Stock		Additional Paid-In Capital		Retained Earnings		Treasury Stock		Deferred Compensation Trust		Deferred Compensation Liability		Total
Balance, June 30, 2024	$	206	$	2,935,053	$	14,160,198	$	(12,961,549)	$	(16,710)	$	16,710	$	4,133,908

Net income	—		—		429,323		—		—		—		429,323

Purchase of common stock for treasury	—		—		—		(359,520)		—		—		(359,520)
Equity-based compensation	—		19,223		—		—		—		—		19,223
Proceeds from Options exercised	—		48,314		—		—		—		—		48,314
Treasury stock issued upon Option exercise	—		(12,814)		—		12,814		—		—		—
Balance, September 30, 2024	$	206	$	2,989,776	$	14,589,521	$	(13,308,255)	$	(16,710)	$	16,710	$	4,271,248

A summary of changes in shareholders’ equity for the nine months ended September 30, 2024 is presented below:


	Common Stock		Additional Paid-In Capital		Retained Earnings		Treasury Stock		Deferred Compensation Trust		Deferred Compensation Liability		Total
Balance, December 31, 2023	$	206	$	2,848,528	$	13,365,025	$	(11,849,034)	$	(16,710)	$	16,710	$	4,364,725

Net income	—		—		1,224,496		—		—		—		1,224,496

Purchase of common stock for treasury	—		—		—		(1,503,216)		—		—		(1,503,216)
Equity-based compensation	—		54,465		—		—		—		—		54,465
Proceeds from Options exercised	—		130,778		—		—		—		—		130,778
Treasury stock issued upon Option exercise and RSU vesting	—		(43,995)		—		43,995		—		—		—
Balance, September 30, 2024	$	206	$	2,989,776	$	14,589,521	$	(13,308,255)	$	(16,710)	$	16,710	$	4,271,248

A summary of changes in shareholders’ equity for the three months ended September 30, 2023 is presented below:


	Common Stock		Additional Paid-In Capital		Retained Earnings		Treasury Stock		Deferred Compensation Trust		Deferred Compensation Liability		Total
Balance, June 30, 2023	$	206	$	2,747,687	$	12,521,793	$	(11,116,423)	$	(16,710)	$	16,710	$	4,153,263


Net income	—		—		433,157		—		—		—		433,157

Purchase of common stock for treasury	—		—		—		(485,328)		—		—		(485,328)
Equity-based compensation	—		26,052		—		—		—		—		26,052
Proceeds from Options exercised	—		45,439		—		—		—		—		45,439
Treasury stock issued upon Option exercise	—		(18,151)		—		18,151		—		—		—
Balance, September 30, 2023	$	206	$	2,801,027	$	12,954,950	$	(11,583,600)	$	(16,710)	$	16,710	$	4,172,583

A summary of changes in shareholders’ equity for the nine months ended September 30, 2023 is presented below:


	Common Stock		Additional Paid-In Capital		Retained Earnings		Treasury Stock		Deferred Compensation Trust		Deferred Compensation Liability		Total
Balance, December 31, 2022	$	206	$	2,600,014	$	11,773,414	$	(10,866,785)	$	(16,710)	$	16,710	$	3,506,849


Net income	—		—		1,181,536		—		—		—		1,181,536

Purchase of common stock for treasury	—		—		—		(796,453)		—		—		(796,453)
Equity-based compensation	—		73,488		—		—		—		—		73,488
Proceeds from Options exercised	—		207,163		—		—		—		—		207,163
Treasury stock issued upon Option exercise	—		(79,638)		—		79,638		—		—		—
Balance, September 30, 2023	$	206	$	2,801,027	$	12,954,950	$	(11,583,600)	$	(16,710)	$	16,710	$	4,172,583

Product Warranties

9 Months Ended

Sep. 30, 2024

Product Warranties Disclosures [Abstract]

Product Warranties

The following table reflects the changes in our Warranty Reserve during the three and nine months ended September 30, 2024 and 2023:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Warranty reserve, beginning of period	$	143,341	$	142,420	$	146,283	$	144,006
Provision	26,270		25,503		68,491		69,085
Payments	(25,672)		(24,129)		(70,835)		(69,297)
Warranty reserve, end of period	$	143,939	$	143,794	$	143,939	$	143,794

Segment Disclosures

9 Months Ended

Sep. 30, 2024

Segment Reporting [Abstract]

Segment Disclosures

reportable segments are comprised of operating divisions in the following geographic areas:


Mid Atlantic:						Maryland, Virginia, West Virginia, Delaware and Washington, D.C.
North East:						New Jersey and Eastern Pennsylvania
Mid East:						New York, Ohio, Western Pennsylvania, Indiana and Illinois
South East:						North Carolina, South Carolina, Tennessee, Florida, Georgia and Kentucky

The following tables present segment revenues, profit and assets with reconciliations to the amounts reported for the consolidated enterprise, where applicable:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Revenues:
Homebuilding Mid Atlantic	$	1,147,893	$	1,146,559	$	3,299,047	$	3,146,501
Homebuilding North East	300,448		268,237		843,452		684,593
Homebuilding Mid East	501,190		468,727		1,352,137		1,282,806
Homebuilding South East	728,109		628,886		2,017,072		1,813,611
Mortgage Banking	55,311		56,616		167,163		158,121
Total consolidated revenues	$	2,732,951	$	2,569,025	$	7,678,871	$	7,085,632


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Income before taxes:
Homebuilding Mid Atlantic	$	214,132	$	212,826	$	613,262	$	567,119
Homebuilding North East	56,246		48,787		157,476		125,779
Homebuilding Mid East	81,385		75,136		211,374		193,360
Homebuilding South East	95,089		107,666		280,936		339,723
Mortgage Banking	36,156		39,921		112,046		107,191
Total segment profit before taxes	483,008		484,336		1,375,094		1,333,172
Reconciling items:
Contract land deposit reserve adjustment (1)	(3,079)		(3,783)		5,712		6,696
Equity-based compensation expense (2)	(19,223)		(26,052)		(54,465)		(73,488)
Corporate capital allocation (3)	86,489		74,171		246,044		215,862
Unallocated corporate overhead	(36,780)		(38,376)		(122,300)		(130,701)
Consolidation adjustments and other	2,575		16,947		6,666		10,948
Corporate interest expense	(6,787)		(6,583)		(20,052)		(20,126)
Corporate interest income	32,409		38,680		106,173		101,963
Reconciling items sub-total	55,604		55,004		167,778		111,154
Consolidated income before taxes	$	538,612	$	539,340	$	1,542,872	$	1,444,326


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Corporate capital allocation charge:
Homebuilding Mid Atlantic	$	35,976	$	33,994	$	104,872	$	102,509
Homebuilding North East	10,578		8,944		30,456		24,542
Homebuilding Mid East	11,929		9,974		32,850		29,453
Homebuilding South East	28,006		21,259		77,866		59,358
Total	$	86,489	$	74,171	$	246,044	$	215,862


	September 30, 2024		December 31, 2023
Assets:
Homebuilding Mid Atlantic	$	1,337,734	$	1,252,360
Homebuilding North East	376,051		314,904
Homebuilding Mid East	437,193		368,154
Homebuilding South East	992,687		796,505
Mortgage Banking	545,703		452,323
Total segment assets	3,689,368		3,184,246
Reconciling items:
Cash and cash equivalents	2,474,219		3,126,472
Deferred taxes	151,699		148,005
Intangible assets and goodwill	49,368		49,368
Operating lease right-of-use assets	74,415		70,384
Finance lease right-of-use assets	31,038		13,310
Contract land deposit reserve	(47,686)		(53,397)
Consolidation adjustments and other	65,738		63,369
Reconciling items sub-total	2,798,791		3,417,511
Consolidated assets	$	6,488,159	$	6,601,757

Fair Value

9 Months Ended

Sep. 30, 2024

Fair Value Disclosures [Abstract]

Fair Value

Financial Instruments

Due to the short term nature of our cash equivalents, we believe that insignificant differences exist between their carrying value and fair value.

Derivative Instruments and Mortgage Loans Held for Sale

commitments to extend credit to borrowers aggregating $2,240,991 and open forward delivery contracts aggregating $2,159,948, which hedge both the rate lock commitments and closed loans held for sale.

The fair value of NVRM’s rate lock commitments to borrowers and the related input levels include, as applicable:

i)the assumed gain/loss of the expected resultant loan sale (Level 2);

ii)the effects of interest rate movements between the date of the rate lock and the balance sheet date (Level 2); and

iii)the value of the servicing rights associated with the loan (Level 2).

The fair value measurement of NVRM's undesignated derivative instruments was as follows:


	September 30, 2024		December 31, 2023
Rate lock commitments:
Gross assets	$	56,189	$	61,150
Gross liabilities	1,575		168
Net rate lock commitments	$	54,614	$	60,982
Forward sales contracts:
Gross assets	$	1,254	$	8
Gross liabilities	4,921		18,305
Net forward sales contracts	$	(3,667)	$	(18,297)

The fair value measurement as of September 30, 2024 was as follows:


	Notional or Principal Amount		Assumed Gain From Loan Sale		Interest Rate Movement Effect		Servicing Rights Value		Security Price Change		Total Fair Value Measurement
Rate lock commitments	$	2,240,991	$	4,178	$	23,157	$	27,279	$	—	$	54,614
Forward sales contracts	$	2,159,948	—		—		—		(3,667)		(3,667)
Mortgages held for sale	$	367,118	764		6,534		4,816		—		12,114
Total fair value measurement			$	4,942	$	29,691	$	32,095	$	(3,667)	$	63,061

Debt	9 Months Ended
Debt	Sep. 30, 2024
Debt Disclosure [Abstract]
Debt	Debt As of September 30, 2024, we had the following debt instruments outstanding: Senior Notes Our outstanding Senior Notes have an aggregate principal balance of $900,000, mature on May 15, 2030 and bear interest at 3.00%, payable semi-annually in arrears on May 15 and November 15. The Senior Notes are senior unsecured obligations and rank equally in right of payment with any of our existing and future unsecured senior indebtedness. The Senior Notes were issued in three separate issuances, $600,000 issued at a discount to yield 3.02%, and the two additional issuances totaling $300,000 issued at a premium to yield 2.00%. The Senior Notes have been reflected net of the unamortized discount or premium, as applicable, and the unamortized debt issuance costs in the accompanying condensed consolidated balance sheet. The indenture governing the Senior Notes does not contain any financial covenants; however, it does contain, among other items, and subject to certain exceptions, covenants that restrict our ability to create, incur, assume or guarantee secured debt, enter into sale and leaseback transactions and conditions related to mergers and/or the sale of assets. We were in compliance with all covenants under the Senior Notes as of September 30, 2024. Credit Agreement We have an unsecured Credit Agreement (the “Credit Agreement”), which provides for aggregate revolving loan commitments of $300,000 (the “Facility”). Under the Credit Agreement, we may request increases of up to $300,000 to the Facility in the form of revolving loan commitments or term loans to the extent that new or existing lenders agree to provide additional revolving loan or term loan commitments. The Credit Agreement provides for a $100,000 sublimit for the issuance of letters of credit, of which approximately $17,100 was outstanding as of September 30, 2024. The Credit Agreement termination date is February 12, 2026. There were no borrowings outstanding under the Facility as of September 30, 2024. Repurchase Agreement NVRM provides for its mortgage origination and other operating activities using cash generated from its operations, borrowings from its parent company, NVR, as well as a revolving mortgage repurchase agreement (the “Repurchase Agreement”), which is non-recourse to NVR. The Repurchase Agreement provides for loan purchases up to $150,000, subject to certain sub-limits. Amounts outstanding under the Repurchase Agreement are collateralized by the Company’s mortgage loans held for sale. Effective July 16, 2024, NVRM entered into the Second Amendment to Second Amended and Restated Master Repurchase Agreement with U.S. Bank National Association, as Agent and a Buyer (the "Amended MRA"), which extended the term of the Repurchase Agreement through July 14, 2025. All other terms and conditions under the Amended Repurchase Agreement remained materially consistent. As of September 30, 2024, there were no borrowing base limitations reducing the amount available under the Repurchase Agreement and there were no borrowings outstanding.

Leases

9 Months Ended

Sep. 30, 2024

Leases [Abstract]

Leases

The components of lease expense were as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Lease expense
Operating lease expense	$	10,078	$	9,385	$	28,939	$	28,000
Finance lease expense:
Amortization of ROU assets	983		520		2,313		1,533
Interest on lease liabilities	350		106		703		316
Short-term lease expense	8,320		7,528		24,399		22,551

Total lease expense	$	19,731	$	17,539	$	56,354	$	52,400

Other information related to leases was as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024			2023
Supplemental Cash Flows Information:
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	8,153	$	7,129	$	23,466		$	21,865
Operating cash flows from finance leases	350		106		703			316
Financing cash flows from finance leases	752		422		1,808			1,233

ROU assets obtained in exchange for lease obligations:
Operating leases	$	9,060	$	7,164	$	22,551		$	30,501
Finance leases	$	2,184	$	126	$	20,041		$	625


					September 30, 2024			December 31, 2023
Weighted-average remaining lease term (in years):
Operating leases					6.0			5.8
Finance leases					10.3			9.9

Weighted-average discount rate:
Operating leases					4.5		%	4.2		%
Finance leases					4.6		%	3.1		%

Leases

The components of lease expense were as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Lease expense
Operating lease expense	$	10,078	$	9,385	$	28,939	$	28,000
Finance lease expense:
Amortization of ROU assets	983		520		2,313		1,533
Interest on lease liabilities	350		106		703		316
Short-term lease expense	8,320		7,528		24,399		22,551

Total lease expense	$	19,731	$	17,539	$	56,354	$	52,400

Other information related to leases was as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024			2023
Supplemental Cash Flows Information:
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	8,153	$	7,129	$	23,466		$	21,865
Operating cash flows from finance leases	350		106		703			316
Financing cash flows from finance leases	752		422		1,808			1,233

ROU assets obtained in exchange for lease obligations:
Operating leases	$	9,060	$	7,164	$	22,551		$	30,501
Finance leases	$	2,184	$	126	$	20,041		$	625


					September 30, 2024			December 31, 2023
Weighted-average remaining lease term (in years):
Operating leases					6.0			5.8
Finance leases					10.3			9.9

Weighted-average discount rate:
Operating leases					4.5		%	4.2		%
Finance leases					4.6		%	3.1		%

Income Taxes	9 Months Ended
Income Taxes	Sep. 30, 2024
Income Tax Disclosure [Abstract]
Income Taxes	14. Income Taxes Our effective tax rate for the three and nine months ended September 30, 2024 was 20.3% and 20.6%, respectively, compared to 19.7% and 18.2% for the three and nine months ended September 30, 2023, respectively. The increase in the effective tax rate in the three and nine month periods of 2024 compared to the same periods in 2023 was primarily attributable to a lower income tax benefit recognized for excess tax benefits from stock option exercises, which totaled $23,128 and $73,736 for the three and nine months ended September 30, 2024, respectively, and $31,877 and $111,028 for the three and nine months ended September 30, 2023, respectively.

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
Pay vs Performance Disclosure - USD ($) $ in Thousands	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Pay vs Performance Disclosure
Net income	$ 429,323	$ 433,157	$ 1,224,496	$ 1,181,536

Insider Trading Arrangements	3 Months Ended
Insider Trading Arrangements	Sep. 30, 2024
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

Significant Accounting Policies (Policies)	9 Months Ended
Significant Accounting Policies (Policies)	Sep. 30, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Basis of Presentation The accompanying unaudited, condensed consolidated financial statements include the accounts of NVR, Inc. (“NVR”, the “Company”, "we", "us" or "our") and its subsidiaries and certain other entities in which the Company is deemed to be the primary beneficiary (see Notes 2 and 3 to the accompanying condensed consolidated financial statements). Intercompany accounts and transactions have been eliminated in consolidation. The statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. Because the accompanying condensed consolidated financial statements do not include all of the information and footnotes required by GAAP, they should be read in conjunction with the financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2023. In the opinion of management, all adjustments (consisting only of normal recurring accruals except as otherwise noted herein) considered necessary for a fair presentation have been included. Operating results for the three and nine months ended September 30, 2024 are not necessarily indicative of the results that may be expected for the year ending December 31, 2024. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates.
Revenue from Contract with Customer	Revenue Recognition Homebuilding revenue is recognized on the settlement date at the contract sales price, when control is transferred to our customers.
Recently Adopted Accounting Pronouncements	Recently Issued Accounting Pronouncements In December 2023, the Financial Accounting Standards Board ("FASB") issued ASU 2023-09, "Income Taxes - Improvements to Income Tax Disclosures." The amendments in the ASU require disclosure of specific categories in the rate reconciliation and for the entity to provide additional information for reconciling items that meet a quantitative threshold. The ASU will be effective for our fiscal year ending December 31, 2025. The amendments in the ASU are to be applied on a prospective basis and early adoption is permitted. We are currently evaluating the impact of the adoption of ASU 2023-09 and do not expect it to have a material impact on our consolidated financial statements and related disclosures. In November 2023, the FASB issued ASU 2023-07, "Segment Reporting - Improvements to Reportable Segment Disclosures." The amendments in the ASU are intended to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses that are regularly provided to the chief operating decision maker and included within each reported measure of segment profit or loss. The amendments also expand interim segment disclosure requirements. The ASU will be effective for our fiscal year ending December 31, 2024 and for interim periods starting in the first quarter of fiscal year 2025. The amendments in this ASU are required to be applied on a retrospective basis and early adoption is permitted. We do not expect the adoption of ASU 2023-07 to have a material impact on our consolidated financial statements and related disclosures.

Variable Interest Entities ("VIEs") (Tables)

9 Months Ended

Sep. 30, 2024

Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure [Abstract]

Total Risk of Loss Related to Contract Land Deposits


	September 30, 2024		December 31, 2023
Contract land deposits	$	716,122	$	629,948
Loss reserve on contract land deposits	(47,686)		(53,397)
Contract land deposits, net	668,436		576,551
Contingent obligations in the form of letters of credit	10,396		7,769
Total risk of loss	$	678,832	$	584,320

Capitalized Interest (Tables)

9 Months Ended

Sep. 30, 2024

Capitalized Interest Costs, Including Allowance for Funds Used During Construction [Abstract]

Summary of Interest Costs Incurred, Capitalized, Expensed and Charged to Cost of Sales

The following table reflects the changes in our capitalized interest during the three and nine months ended September 30, 2024 and 2023:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Interest capitalized, beginning of period	$	206	$	189	$	151	$	570
Interest incurred	7,121		6,921		20,963		20,750
Interest charged to interest expense	(7,046)		(6,896)		(20,770)		(20,949)
Interest charged to cost of sales	(14)		(22)		(77)		(179)
Interest capitalized, end of period	$	267	$	192	$	267	$	192

Earnings per Share (Tables)

9 Months Ended

Sep. 30, 2024

Earnings Per Share [Abstract]

Weighted Average Shares and Share Equivalents Used to Calculate Basic and Diluted Earnings Per Share

The following weighted average shares and share equivalents were used to calculate basic and diluted earnings per share ("EPS") for the three and nine months ended September 30, 2024 and 2023:


	Three Months Ended September 30,		Nine Months Ended September 30,
	2024	2023	2024	2023
Weighted average number of shares outstanding used to calculate basic EPS	3,074,230	3,258,863	3,128,709	3,253,623
Dilutive securities:
Stock options and restricted share units	215,694	199,279	205,984	201,477
Weighted average number of shares and share equivalents outstanding used to calculate diluted EPS	3,289,924	3,458,142	3,334,693	3,455,100

Summary of Antidilutive Securities Excluded from Computation of Earnings Per Share


	Three Months Ended September 30,		Nine Months Ended September 30,
	2024	2023	2024	2023
Anti-dilutive securities	4,520	4,188	5,060	15,464

Shareholders' Equity (Tables)

3 Months Ended

9 Months Ended

Sep. 30, 2024

Sep. 30, 2023

Sep. 30, 2024

Sep. 30, 2023

Equity [Abstract]

Summary of Changes in Shareholders' Equity

A summary of changes in shareholders’ equity for the three months ended September 30, 2024 is presented below:


	Common Stock		Additional Paid-In Capital		Retained Earnings		Treasury Stock		Deferred Compensation Trust		Deferred Compensation Liability		Total
Balance, June 30, 2024	$	206	$	2,935,053	$	14,160,198	$	(12,961,549)	$	(16,710)	$	16,710	$	4,133,908

Net income	—		—		429,323		—		—		—		429,323

Purchase of common stock for treasury	—		—		—		(359,520)		—		—		(359,520)
Equity-based compensation	—		19,223		—		—		—		—		19,223
Proceeds from Options exercised	—		48,314		—		—		—		—		48,314
Treasury stock issued upon Option exercise	—		(12,814)		—		12,814		—		—		—
Balance, September 30, 2024	$	206	$	2,989,776	$	14,589,521	$	(13,308,255)	$	(16,710)	$	16,710	$	4,271,248

A summary of changes in shareholders’ equity for the three months ended September 30, 2023 is presented below:


	Common Stock		Additional Paid-In Capital		Retained Earnings		Treasury Stock		Deferred Compensation Trust		Deferred Compensation Liability		Total
Balance, June 30, 2023	$	206	$	2,747,687	$	12,521,793	$	(11,116,423)	$	(16,710)	$	16,710	$	4,153,263


Net income	—		—		433,157		—		—		—		433,157

Purchase of common stock for treasury	—		—		—		(485,328)		—		—		(485,328)
Equity-based compensation	—		26,052		—		—		—		—		26,052
Proceeds from Options exercised	—		45,439		—		—		—		—		45,439
Treasury stock issued upon Option exercise	—		(18,151)		—		18,151		—		—		—
Balance, September 30, 2023	$	206	$	2,801,027	$	12,954,950	$	(11,583,600)	$	(16,710)	$	16,710	$	4,172,583

A summary of changes in shareholders’ equity for the nine months ended September 30, 2024 is presented below:


	Common Stock		Additional Paid-In Capital		Retained Earnings		Treasury Stock		Deferred Compensation Trust		Deferred Compensation Liability		Total
Balance, December 31, 2023	$	206	$	2,848,528	$	13,365,025	$	(11,849,034)	$	(16,710)	$	16,710	$	4,364,725

Net income	—		—		1,224,496		—		—		—		1,224,496

Purchase of common stock for treasury	—		—		—		(1,503,216)		—		—		(1,503,216)
Equity-based compensation	—		54,465		—		—		—		—		54,465
Proceeds from Options exercised	—		130,778		—		—		—		—		130,778
Treasury stock issued upon Option exercise and RSU vesting	—		(43,995)		—		43,995		—		—		—
Balance, September 30, 2024	$	206	$	2,989,776	$	14,589,521	$	(13,308,255)	$	(16,710)	$	16,710	$	4,271,248

A summary of changes in shareholders’ equity for the nine months ended September 30, 2023 is presented below:


	Common Stock		Additional Paid-In Capital		Retained Earnings		Treasury Stock		Deferred Compensation Trust		Deferred Compensation Liability		Total
Balance, December 31, 2022	$	206	$	2,600,014	$	11,773,414	$	(10,866,785)	$	(16,710)	$	16,710	$	3,506,849


Net income	—		—		1,181,536		—		—		—		1,181,536

Purchase of common stock for treasury	—		—		—		(796,453)		—		—		(796,453)
Equity-based compensation	—		73,488		—		—		—		—		73,488
Proceeds from Options exercised	—		207,163		—		—		—		—		207,163
Treasury stock issued upon Option exercise	—		(79,638)		—		79,638		—		—		—
Balance, September 30, 2023	$	206	$	2,801,027	$	12,954,950	$	(11,583,600)	$	(16,710)	$	16,710	$	4,172,583

Product Warranties (Tables)

9 Months Ended

Sep. 30, 2024

Product Warranties Disclosures [Abstract]

Summary of Changes in Product Warranties Reserve

The following table reflects the changes in our Warranty Reserve during the three and nine months ended September 30, 2024 and 2023:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Warranty reserve, beginning of period	$	143,341	$	142,420	$	146,283	$	144,006
Provision	26,270		25,503		68,491		69,085
Payments	(25,672)		(24,129)		(70,835)		(69,297)
Warranty reserve, end of period	$	143,939	$	143,794	$	143,939	$	143,794

Segment Disclosures (Tables)

9 Months Ended

Sep. 30, 2024

Segment Reporting [Abstract]

Revenues

The following tables present segment revenues, profit and assets with reconciliations to the amounts reported for the consolidated enterprise, where applicable:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Revenues:
Homebuilding Mid Atlantic	$	1,147,893	$	1,146,559	$	3,299,047	$	3,146,501
Homebuilding North East	300,448		268,237		843,452		684,593
Homebuilding Mid East	501,190		468,727		1,352,137		1,282,806
Homebuilding South East	728,109		628,886		2,017,072		1,813,611
Mortgage Banking	55,311		56,616		167,163		158,121
Total consolidated revenues	$	2,732,951	$	2,569,025	$	7,678,871	$	7,085,632

Profit before Taxes


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Income before taxes:
Homebuilding Mid Atlantic	$	214,132	$	212,826	$	613,262	$	567,119
Homebuilding North East	56,246		48,787		157,476		125,779
Homebuilding Mid East	81,385		75,136		211,374		193,360
Homebuilding South East	95,089		107,666		280,936		339,723
Mortgage Banking	36,156		39,921		112,046		107,191
Total segment profit before taxes	483,008		484,336		1,375,094		1,333,172
Reconciling items:
Contract land deposit reserve adjustment (1)	(3,079)		(3,783)		5,712		6,696
Equity-based compensation expense (2)	(19,223)		(26,052)		(54,465)		(73,488)
Corporate capital allocation (3)	86,489		74,171		246,044		215,862
Unallocated corporate overhead	(36,780)		(38,376)		(122,300)		(130,701)
Consolidation adjustments and other	2,575		16,947		6,666		10,948
Corporate interest expense	(6,787)		(6,583)		(20,052)		(20,126)
Corporate interest income	32,409		38,680		106,173		101,963
Reconciling items sub-total	55,604		55,004		167,778		111,154
Consolidated income before taxes	$	538,612	$	539,340	$	1,542,872	$	1,444,326


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Corporate capital allocation charge:
Homebuilding Mid Atlantic	$	35,976	$	33,994	$	104,872	$	102,509
Homebuilding North East	10,578		8,944		30,456		24,542
Homebuilding Mid East	11,929		9,974		32,850		29,453
Homebuilding South East	28,006		21,259		77,866		59,358
Total	$	86,489	$	74,171	$	246,044	$	215,862

Assets


	September 30, 2024		December 31, 2023
Assets:
Homebuilding Mid Atlantic	$	1,337,734	$	1,252,360
Homebuilding North East	376,051		314,904
Homebuilding Mid East	437,193		368,154
Homebuilding South East	992,687		796,505
Mortgage Banking	545,703		452,323
Total segment assets	3,689,368		3,184,246
Reconciling items:
Cash and cash equivalents	2,474,219		3,126,472
Deferred taxes	151,699		148,005
Intangible assets and goodwill	49,368		49,368
Operating lease right-of-use assets	74,415		70,384
Finance lease right-of-use assets	31,038		13,310
Contract land deposit reserve	(47,686)		(53,397)
Consolidation adjustments and other	65,738		63,369
Reconciling items sub-total	2,798,791		3,417,511
Consolidated assets	$	6,488,159	$	6,601,757

Fair Value (Tables)

9 Months Ended

Sep. 30, 2024

Fair Value Disclosures [Abstract]

Undesignated Derivative Instruments

The fair value measurement of NVRM's undesignated derivative instruments was as follows:


	September 30, 2024		December 31, 2023
Rate lock commitments:
Gross assets	$	56,189	$	61,150
Gross liabilities	1,575		168
Net rate lock commitments	$	54,614	$	60,982
Forward sales contracts:
Gross assets	$	1,254	$	8
Gross liabilities	4,921		18,305
Net forward sales contracts	$	(3,667)	$	(18,297)

Fair Value Measurement

The fair value measurement as of September 30, 2024 was as follows:


	Notional or Principal Amount		Assumed Gain From Loan Sale		Interest Rate Movement Effect		Servicing Rights Value		Security Price Change		Total Fair Value Measurement
Rate lock commitments	$	2,240,991	$	4,178	$	23,157	$	27,279	$	—	$	54,614
Forward sales contracts	$	2,159,948	—		—		—		(3,667)		(3,667)
Mortgages held for sale	$	367,118	764		6,534		4,816		—		12,114
Total fair value measurement			$	4,942	$	29,691	$	32,095	$	(3,667)	$	63,061

Leases (Tables)

9 Months Ended

Sep. 30, 2024

Leases [Abstract]

Components of Lease Expense and Other Information related to Leases

The components of lease expense were as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Lease expense
Operating lease expense	$	10,078	$	9,385	$	28,939	$	28,000
Finance lease expense:
Amortization of ROU assets	983		520		2,313		1,533
Interest on lease liabilities	350		106		703		316
Short-term lease expense	8,320		7,528		24,399		22,551

Total lease expense	$	19,731	$	17,539	$	56,354	$	52,400

ScheduleofSupplementalCashFlowInformationRelatedtoLeases

Other information related to leases was as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024			2023
Supplemental Cash Flows Information:
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	8,153	$	7,129	$	23,466		$	21,865
Operating cash flows from finance leases	350		106		703			316
Financing cash flows from finance leases	752		422		1,808			1,233

ROU assets obtained in exchange for lease obligations:
Operating leases	$	9,060	$	7,164	$	22,551		$	30,501
Finance leases	$	2,184	$	126	$	20,041		$	625


					September 30, 2024			December 31, 2023
Weighted-average remaining lease term (in years):
Operating leases					6.0			5.8
Finance leases					10.3			9.9

Weighted-average discount rate:
Operating leases					4.5		%	4.2		%
Finance leases					4.6		%	3.1		%

Significant Accounting Policies - Additional Information (Detail) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Other Assets
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Contract cost	$ 25,100	$ 17,900
Home Building Segment
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Restricted cash and cash equivalents	46,474	41,483
Contract liabilities for customer deposits	$ 358,609	$ 334,441

Variable Interest Entities ("VIEs") - Additional Information (Detail) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024 USD ($) lot	Sep. 30, 2023 USD ($)	Sep. 30, 2024 USD ($) lot	Sep. 30, 2023 USD ($)	Dec. 31, 2023 USD ($)
Variable Interest Entity [Line Items]
Letters of credit related to lots	$ 10,396		$ 10,396
Net Contract Land Deposit Impairment Recoveries	(3,900)	$ (3,800)	4,900	$ 6,200
Loss reserve on contract land deposits	47,686		47,686		$ 53,397
Contract land deposits in cash	$ 716,122		716,122		629,948
Contingent obligations in the form of letters of credit					7,769
Contract land deposit recoveries, net			$ (4,868)	$ (6,217)
Contingent obligations in the form of letters of credit					$ 7,769
Variable Interest Entities
Variable Interest Entity [Line Items]
Maximum range of deposits required under the purchase agreements	10.00%		10.00%
Lots controlled by NVR \| lot	144,400		144,400
Contract land deposits in cash under lot purchase Agreements	$ 696,500		$ 696,500
Letters of credit related to lots	$ 10,400		$ 10,400
Contract on Raw Ground with Landowners
Variable Interest Entity [Line Items]
Lots controlled by NVR \| lot	38,200		38,200
Contract land deposits in cash	$ 19,700		$ 19,700
Refundable deposits and letters of credit	$ 5,100		$ 5,100

Variable Interest Entities ("VIEs") - Total Risk of Loss Related to Contract Land Deposits (Detail) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure [Abstract]
Contract land deposits	$ 716,122	$ 629,948
Loss reserve on contract land deposits	(47,686)	(53,397)
Contract land deposits, net	668,436	576,551
Contingent obligations in the form of letters of credit		7,769
Total risk of loss	678,832	$ 584,320
Letters of credit related to lots	$ 10,396

Joint Ventures - Additional Information (Detail) $ in Thousands	Sep. 30, 2024 USD ($) lot joint_venture	Dec. 31, 2023 USD ($)
Joint Ventures [Line Items]
Aggregate investment	$ 27,800
Number of joint ventures \| joint_venture	3
Expected production of finished lots \| lot	5,150
Total lots controlled by company under the joint venture \| lot	4,800
Total lots either under contract with unrelated parties or not under the current contract \| lot	350
Additional funding commitments in the aggregate	$ 9,800
Other Assets
Joint Ventures [Line Items]
Aggregate investment		$ 29,200
Home Building Segment
Joint Ventures [Line Items]
Restricted cash and cash equivalents	46,474	41,483
Accrued expenses and other liabilities	$ 406,319	$ 413,043

Land Under Development - Additional Information (Detail) $ in Thousands	Sep. 30, 2024 USD ($) lot numberoflots
Real Estate [Abstract]
Carrying value of raw parcels of land \| $	$ 63,339
Real Estate [Line Items]
InventoryRealEstateLandAcquisitionCosts \| $	$ 20,000
InventoryRealEstateLandAcquisitionExpectedLots \| numberoflots	850
Total Raw Land Parcel Owned
Real Estate [Abstract]
Number of finished lots expected to be developed from raw parcels of land \| lot	2,600
Real Estate [Line Items]
Number of finished lots expected to be developed from raw parcels of land \| lot	2,600

Capitalized Interest - Summary of Interest Costs Incurred, Capitalized, Expensed and Charged to Cost of Sales (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Capitalized Interest Costs, Including Allowance for Funds Used During Construction [Roll Forward]
Interest capitalized, beginning of period	$ 206	$ 189	$ 151	$ 570
Interest incurred	7,121	6,921	20,963	20,750
Interest charged to interest expense	(7,046)	(6,896)	(20,770)	(20,949)
Interest charged to cost of sales	(14)	(22)	(77)	(179)
Interest capitalized, end of period	$ 267	$ 192	$ 267	$ 192

Earnings Per Share - Weighted Average Shares and Share Equivalents Used to Calculate Basic and Diluted Earnings Per Share (Detail) - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Earnings Per Share [Abstract]
Weighted average number of shares outstanding used to calculate basic EPS (in shares)	3,074,230	3,258,863	3,128,709	3,253,623
Dilutive securities:
Stock options and restricted share units (in shares)	215,694	199,279	205,984	201,477
Weighted average number of shares and share equivalents outstanding used to calculate diluted EPS (in shares)	3,289,924	3,458,142	3,334,693	3,455,100

Earnings Per Share - Summary of Antidilutive Securities Excluded from Computation of Earnings Per Share (Detail) - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Earnings Per Share [Abstract]
Anti-dilutive securities (in shares)	4,520	4,188	5,060	15,464

Shareholders' Equity - Summary of Changes in Shareholders' Equity (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning Balance	$ 4,133,908	$ 4,153,263	$ 4,364,725	$ 3,506,849
Net income	429,323	433,157	1,224,496	1,181,536
Purchase of common stock for treasury	(359,520)	(485,328)	(1,503,216)	(796,453)
Equity-based compensation	19,223	26,052	54,465	73,488
Proceeds from Options exercised	48,314	45,439	130,778	207,163
Ending Balance	$ 4,271,248	$ 4,172,583	$ 4,271,248	$ 4,172,583
Common stock repurchased (in shares)	42,629	78,750	192,655	134,751
Reissued shares during the period, shares (in shares)	17,153	28,189	61,939	125,745
Common Stock
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning Balance	$ 206	$ 206	$ 206	$ 206
Ending Balance	206	206	206	206
Additional Paid-In Capital
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning Balance	2,935,053	2,747,687	2,848,528	2,600,014
Equity-based compensation	19,223	26,052	54,465	73,488
Proceeds from Options exercised	48,314	45,439	130,778	207,163
Treasury stock issued upon Option exercise and RSU vesting	(12,814)	(18,151)	(43,995)	(79,638)
Ending Balance	2,989,776	2,801,027	2,989,776	2,801,027
Retained Earnings
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning Balance	14,160,198	12,521,793	13,365,025	11,773,414
Net income	429,323	433,157	1,224,496	1,181,536
Ending Balance	14,589,521	12,954,950	14,589,521	12,954,950
Treasury Stock
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning Balance	(12,961,549)	(11,116,423)	(11,849,034)	(10,866,785)
Purchase of common stock for treasury	(359,520)	(485,328)	(1,503,216)	(796,453)
Treasury stock issued upon Option exercise and RSU vesting	12,814	18,151	43,995	79,638
Ending Balance	(13,308,255)	(11,583,600)	(13,308,255)	(11,583,600)
Deferred Compensation Trust
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning Balance	(16,710)	(16,710)	(16,710)	(16,710)
Ending Balance	(16,710)	(16,710)	(16,710)	(16,710)
Deferred Compensation Liability
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning Balance	16,710	16,710	16,710	16,710
Ending Balance	$ 16,710	$ 16,710	$ 16,710	$ 16,710

Shareholders' Equity - Additional Information (Detail) - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Equity [Abstract]
Common stock repurchased (in shares)	42,629	78,750	192,655	134,751
Reissued shares during the period, shares (in shares)	17,153	28,189	61,939	125,745

Product Warranties Product Warranties - Schedule of Product Warranties Reserves (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Movement in Standard and Extended Product Warranty Accrual, Increase (Decrease) [Roll Forward]
Warranty reserve, beginning of period	$ 143,341	$ 142,420	$ 146,283	$ 144,006
Provision	26,270	25,503	68,491	69,085
Payments	(25,672)	(24,129)	(70,835)	(69,297)
Warranty reserve, end of period	$ 143,939	$ 143,794	$ 143,939	$ 143,794

Segment Disclosures - Additional Information (Detail)	9 Months Ended
Segment Disclosures - Additional Information (Detail)	Sep. 30, 2024 segment
Senior Notes due 2030
Segment Reporting Information [Line Items]
Senior notes interest rate	3.00%
Home Building Segment
Segment Reporting Information [Line Items]
Number of reportable segments	4
Mortgage Banking
Segment Reporting Information [Line Items]
Number of reportable segments	1

Segment Disclosures - Revenues (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenues	$ 2,732,951	$ 2,569,025	$ 7,678,871	$ 7,085,632
Home Building Segment
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenues	2,677,640	2,512,409	7,511,708	6,927,511
Home Building Segment \| Mid Atlantic
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenues	1,147,893	1,146,559	3,299,047	3,146,501
Home Building Segment \| North East
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenues	300,448	268,237	843,452	684,593
Home Building Segment \| Mid East
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenues	501,190	468,727	1,352,137	1,282,806
Home Building Segment \| South East
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenues	728,109	628,886	2,017,072	1,813,611
Mortgage Banking
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenues	$ 55,311	$ 56,616	$ 167,163	$ 158,121

Segment Disclosures - Income before Taxes (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Income before taxes	$ 538,612	$ 539,340	$ 1,542,872	$ 1,444,326
Equity-based compensation expense			(54,465)	(73,488)
Home Building Segment
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Income before taxes	503,667	500,806	1,433,881	1,341,267
Mortgage Banking
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Income before taxes	34,945	38,534	108,991	103,059
Operating Segments
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Income before taxes	483,008	484,336	1,375,094	1,333,172
Operating Segments \| Home Building Segment \| Mid Atlantic
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Income before taxes	214,132	212,826	613,262	567,119
Operating Segments \| Home Building Segment \| North East
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Income before taxes	56,246	48,787	157,476	125,779
Operating Segments \| Home Building Segment \| Mid East
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Income before taxes	81,385	75,136	211,374	193,360
Operating Segments \| Home Building Segment \| South East
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Income before taxes	95,089	107,666	280,936	339,723
Operating Segments \| Mortgage Banking
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Income before taxes	36,156	39,921	112,046	107,191
Corporate and Reconciling Items
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Income before taxes	55,604	55,004	167,778	111,154
Segment Reporting, Reconciling Item, Excluding Corporate Nonsegment
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Contract land deposit reserve adjustment	(3,079)	(3,783)	5,712	6,696
Equity-based compensation expense	(19,223)	(26,052)	(54,465)	(73,488)
Corporate capital allocation	86,489	74,171	246,044	215,862
Unallocated corporate overhead	(36,780)	(38,376)	(122,300)	(130,701)
Consolidation adjustments and other	2,575	16,947	6,666	10,948
Segment Reporting, Reconciling Item, Corporate Nonsegment
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Corporate Interest Expense	(6,787)	(6,583)	(20,052)	(20,126)
Interest income	$ 32,409	$ 38,680	$ 106,173	$ 101,963

Segment Disclosures - Corporate Capital Allocation Charge (Detail) - Corporate and Reconciling Items - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Segment Reporting, Other Significant Reconciling Item [Line Items]
Corporate capital allocation charge	$ 86,489	$ 74,171	$ 246,044	$ 215,862
Home Building Segment \| Mid Atlantic
Segment Reporting, Other Significant Reconciling Item [Line Items]
Corporate capital allocation charge	35,976	33,994	104,872	102,509
Home Building Segment \| North East
Segment Reporting, Other Significant Reconciling Item [Line Items]
Corporate capital allocation charge	10,578	8,944	30,456	24,542
Home Building Segment \| Mid East
Segment Reporting, Other Significant Reconciling Item [Line Items]
Corporate capital allocation charge	11,929	9,974	32,850	29,453
Home Building Segment \| South East
Segment Reporting, Other Significant Reconciling Item [Line Items]
Corporate capital allocation charge	$ 28,006	$ 21,259	$ 77,866	$ 59,358

Segment Disclosures - Assets (Detail) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Segment Reporting, Asset Reconciling Item [Line Items]
Total assets	$ 6,488,159	$ 6,601,757
Finance Lease, Right-of-Use Asset	31,038	13,310
Contract land deposit reserve	(47,686)	(53,397)
Home Building Segment
Segment Reporting, Asset Reconciling Item [Line Items]
Total assets	5,935,109	6,142,087
Cash and cash equivalents	2,474,219	3,126,472
Operating lease right-of-use assets	74,415	70,384
Mortgage Banking
Segment Reporting, Asset Reconciling Item [Line Items]
Total assets	553,050	459,670
Cash and cash equivalents	36,727	36,422
Operating lease right-of-use assets	21,499	23,541
Operating Segments
Segment Reporting, Asset Reconciling Item [Line Items]
Total assets	3,689,368	3,184,246
Operating Segments \| Home Building Segment \| Mid Atlantic
Segment Reporting, Asset Reconciling Item [Line Items]
Total assets	1,337,734	1,252,360
Operating Segments \| Home Building Segment \| North East
Segment Reporting, Asset Reconciling Item [Line Items]
Total assets	376,051	314,904
Operating Segments \| Home Building Segment \| Mid East
Segment Reporting, Asset Reconciling Item [Line Items]
Total assets	437,193	368,154
Operating Segments \| Home Building Segment \| South East
Segment Reporting, Asset Reconciling Item [Line Items]
Total assets	992,687	796,505
Operating Segments \| Mortgage Banking
Segment Reporting, Asset Reconciling Item [Line Items]
Total assets	545,703	452,323
Segment Reporting, Reconciling Item, Excluding Corporate Nonsegment
Segment Reporting, Asset Reconciling Item [Line Items]
Total assets	2,798,791	3,417,511
Deferred taxes	151,699	148,005
Intangible assets and goodwill	49,368	49,368
Finance Lease, Right-of-Use Asset	31,038	13,310
Contract land deposit reserve	(47,686)	(53,397)
Consolidation adjustments and other	$ 65,738	$ 63,369

Fair Value - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fair value measurement gain/(loss)			$ 63,061		$ 49,034
Home Building Segment
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Senior Notes carrying value	$ 911,599		911,599		913,027
Home Building Segment \| Senior Notes due 2030
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Senior Notes carrying value	911,599		911,599		913,027
Home Building Segment \| Level 2 \| Fair Value, Recurring \| Senior Notes due 2030
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Senior Notes fair value	833,796		833,796		803,646
Mortgage Banking \| Level 2 \| Not Designated as Hedging Instrument
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value adjustment income (expense)	(17,529)	$ 32,167	(14,027)	$ (10,322)
Mortgage Banking \| Level 2 \| Fair Value, Recurring \| Rate Lock Commitments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value disclosure, off-balance sheet risks, face amount, liability	2,240,991		2,240,991
Total fair value measurement gain/(loss)			54,614
Mortgage Banking \| Level 2 \| Fair Value, Recurring \| Forward Sales Contracts
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value disclosure, off-balance sheet risks, face amount, liability	2,159,948		2,159,948
Total fair value measurement gain/(loss)			(3,667)
Mortgage Banking \| Level 2 \| Fair Value, Recurring \| Mortgages Held for Sale
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trade and loans receivables held-for-sale, net, not part of disposal group	379,232		379,232		222,560
Fair Value, principal amount, loans held for sale	$ 367,118		367,118		216,211
Fair value, option, changes in fair value, gain (loss)			$ 12,114		$ (6,349)

Fair Value - Undesignated Derivative Instruments (Detail) - Mortgage Banking - Level 2 - Fair Value, Recurring - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Other Assets \| Rate Lock Commitments
Derivatives, Fair Value [Line Items]
Gross assets	$ 56,189	$ 61,150
Gross liabilities	1,575	168
Net rate lock commitments and forward sales contracts	54,614	60,982
Accrued Liabilities \| Forward Sales Contracts
Derivatives, Fair Value [Line Items]
Gross assets	1,254	8
Gross liabilities	4,921	18,305
Net rate lock commitments and forward sales contracts	$ (3,667)	$ (18,297)

Fair Value - Fair Value Measurement (Detail) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2024	Dec. 31, 2023
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assumed Gain From Loan Sale	$ 4,942
Interest Rate Movement Effect	29,691
Servicing Rights Value	32,095
Security Price Change	(3,667)
Total Fair Value Measurement	63,061	$ 49,034
Mortgage Banking \| Level 2 \| Fair Value, Recurring \| Rate Lock Commitments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value disclosure, off-balance sheet risks, face amount, liability	2,240,991
Assumed Gain From Loan Sale	4,178
Interest Rate Movement Effect	23,157
Servicing Rights Value	27,279
Total Fair Value Measurement	54,614
Mortgage Banking \| Level 2 \| Fair Value, Recurring \| Forward Sales Contracts
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value disclosure, off-balance sheet risks, face amount, liability	2,159,948
Security Price Change	(3,667)
Total Fair Value Measurement	(3,667)
Mortgage Banking \| Level 2 \| Fair Value, Recurring \| Mortgages Held for Sale
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assumed Gain From Loan Sale	764
Interest Rate Movement Effect	6,534
Servicing Rights Value	4,816
Fair value, option, changes in fair value, gain (loss)	12,114	(6,349)
Fair Value, principal amount, loans held for sale	$ 367,118	$ 216,211

Debt - Additional Information (Detail)	9 Months Ended
Debt - Additional Information (Detail)	Sep. 30, 2024 USD ($)
Credit Agreement \| Revolving Credit Facility
Debt Instrument [Line Items]
Maximum loan borrowing capacity	$ 300,000,000
Increase in commitment available	300,000,000
Debt outstanding	0
Credit Agreement \| Revolving Credit Facility \| Sublimit for Issuance of Letters of Credit
Debt Instrument [Line Items]
Maximum loan borrowing capacity	100,000,000
Letters of credit outstanding	17,100,000
Repurchase Agreement \| Revolving Credit Facility
Debt Instrument [Line Items]
Maximum loan borrowing capacity	150,000,000
Debt outstanding	0
Borrowing base limitations	0
Senior Notes due 2030
Debt Instrument [Line Items]
Senior notes principal amount	$ 900,000,000
Frequency of senior notes payment	semi-annually in arrears on May 15 and November 15
$600M Senior Notes Due Two Thousand Thirty
Debt Instrument [Line Items]
Senior notes principal amount	$ 600,000,000
Senior notes effective interest rate	3.02%
Additional Senior Notes Due Two Thousand Thirty
Debt Instrument [Line Items]
Senior notes principal amount	$ 300,000,000
Senior notes effective interest rate	2.00%

Leases - Narrative (Details) - USD ($) $ in Thousands	9 Months Ended
Leases - Narrative (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Leases [Abstract]
Operating lease, term	15 years 10 months 24 days
Operating lease, option to extend	20
Finance Lease, Right-of-Use Asset	$ 31,038	$ 13,310
Finance Lease, Liability	$ 33,198	$ 14,965

Leases - Components of Lease Expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Leases [Abstract]
Operating Lease, Cost	$ 10,078	$ 9,385	$ 28,939	$ 28,000
Finance Lease, Right-of-Use Asset, Amortization	983	520	2,313	1,533
Finance Lease, Interest Expense	350	106	703	316
Short-term Lease Payments	8,320	7,528	24,399	22,551
Lease, Cost	$ 19,731	$ 17,539	$ 56,354	$ 52,400

Leases - Supplemental Information (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023
Supplemental Cash Flows Information:
Operating cash flows from operating leases	$ 8,153	$ 7,129	$ 23,466	$ 21,865
Operating cash flows from finance leases	350	106	703	316
Financing cash flows from finance leases	752	422	1,808	1,233
ROU assets obtained in exchange for lease obligations:
Operating leases	9,060	7,164	22,551	30,501
Finance leases	$ 2,184	$ 126	$ 20,041	$ 625
Weighted-average remaining lease term (in years):
Operating leases	6 years		6 years		5 years 9 months 18 days
Finance leases	10 years 3 months 18 days		10 years 3 months 18 days		9 years 10 months 24 days
Weighted-average discount rate:
Operating leases	4.50%		4.50%		4.20%
Finance leases	4.60%		4.60%		3.10%

Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Income Tax Disclosure [Abstract]
Effective tax rate	20.30%	19.70%	20.60%	18.20%
Excess tax benefit recognized	$ 23,128	$ 31,877	$ 73,736	$ 111,028