Consent of Independent Auditors

We consent to the  reference of our firm under the caption  "Experts" and to the
use 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.
included in the  Post-Effective  Amendment No. 1 to the  Registration  Statement
(Form S-1 No.  333-29737) and related  Prospectus of Monterey Homes  Corporation
filed with the Securities and Exchange Commission.

                                     /s/ Ernst & Young LLP

Dallas, Texas
September 30, 1997