Exhibit 23.2


                        Consent of Independent Auditors


We consent to the incorporation by reference of our report dated April 15, 1997,
except  for note 6, as to which the date is July 1,  1997,  with  respect to the
financial  statements of Legacy  Homes,  Ltd.  incorporated  by reference in the
Registration  Statement (Form S-8) pertaining to the Monterey Homes  Corporation
Stock Option Plan of Monterey Homes Corporation included in its Form 8-K/A dated
September 12, 1997, filed with the Securities and Exchange Commission.


                                              /s/ Ernst & Young LLP

Dallas, Texas
October 10, 1997