EXHIBIT 5


                    [LETTERHEAD OF CAHILL GORDON & REINDEL]



                               April 8, 1996











Continental Homes Holding Corp.
7001 N. Scottsdale Road
Suite 2050
Scottsdale, Arizona  85253

Ladies and Gentlemen:


          We have examined a copy of the Registration Statement on
Form S-3 (No. 333-1669) filed by Continental Homes Holding Corp.
(the "Company") and its subsidiaries (collectively, the "Subsid-
iaries") with the Securities and Exchange Commission on March 13,
1996 relating to the registration pursuant to the provisions of
the Securities Act of 1933, as amended (the "Act"), of
(i) $150,000,000 principal amount of Senior Notes due 2006 of the
Company (the "Notes") and (ii) the guarantees (collectively, the
"Guarantees") issued by the Subsidiaries in connection with the
Notes.  The Notes and the Guarantees are to be issued under an
Indenture (the "Indenture") among the Company, the Subsidiaries
and First Union National Bank, as trustee (the "Trustee").  In
rendering this opinion, we have reviewed such documents and made
such investigation as we deemed appropriate.

 
                                 -2-



          We are of the opinion that (subject to compliance with
the pertinent provisions of the Act and, with respect to the
Indenture, the Notes and the Guarantees, the Trust Indenture Act
of 1939, as amended, and to compliance with such securities or
"blue sky" laws of any jurisdiction as may be applicable):

          1.   When the Indenture has been duly authorized, exe-
cuted and delivered by the proper officers of the Company, the
Subsidiaries and the Trustee, and when the Notes have been duly
executed, authenticated, registered, issued and delivered in
accordance with the terms of the Indenture, the Notes will consti-
tute valid and binding obligations of the Company, enforceable
against the Company in accordance with their terms and entitled to
the benefits of the Indenture, subject to applicable bankruptcy,
insolvency, reorganization, moratorium, fraudulent conveyance and
similar laws affecting creditors' rights and remedies generally
and subject to general principles of equity.

          2.   When the Indenture has been duly authorized, exe-
cuted and delivered by the proper officers of the Company, the
Subsidiaries and the Trustee, and when the Guarantees have been
duly executed, issued and delivered in accordance with the terms
of the Indenture, the Guarantees will constitute valid and binding
obligations of the Subsidiaries, enforceable against the Subsid-
iaries in accordance with their terms and entitled to the benefits
of the Indenture, subject to applicable bankruptcy, insolvency,
reorganization, moratorium, fraudulent conveyance and similar laws
affecting creditors' rights and remedies generally and subject to
general principles of equity.

          We hereby consent to the use of our firm's name under
the caption "Legal Matters" and to the filing of this opinion with
the Securities and Exchange Commission as an exhibit to the afore-
said Registration Statement.

                                   Very truly yours,


                                   /s/ Cahill Gordon & Reindel