LGI Homes designs, builds, and sells new homes, targeting entry-level and first-time buyers — specifically renters — and converting them into homeowners. LGI operates 144 active communities across 21 states, primarily in the Sun Belt and Southeast, with its Central (Texas) and Southeast segments representing the largest share of closings. LGI's sales model is built around an in-house direct sales force staffed at on-site information centers, trained to walk renters through the entire home-buying process. Marketing targets renters via digital advertising and signage, funneling them to in-person appointments. LGI builds homes as spec inventory before a buyer is under contract, enabling quick closings and a simplified purchase experience. Revenue is driven by homes closed and average selling price; LGI closed roughly 4,800 homes in FY25 at an ASP of approximately $364,000. A key cost advantage is LGI's land strategy: rather than buying finished lots, LGI acquires raw land and develops it internally, capturing the developer's margin within its own gross margin. LGI also periodically sells homes in bulk to institutional buyers (roughly 16% of FY25 closings), which carries lower gross margins but similar operating margins due to reduced selling costs. LGI offers a Terrata Homes brand for the luxury segment at a higher ASP, though it represents less than 5% of closings. Growth is driven by community count expansion within LGI's existing 35 markets, with a target of 150–160 active communities by end of 2026.