<SUBMISSION>
<ACCESSION-NUMBER>0000909518-04-000626
<TYPE>4
<PUBLIC-DOCUMENT-COUNT>1
<PERIOD>20040722
<FILING-DATE>20040723
<REPORTING-OWNER>
<OWNER-DATA>
<CONFORMED-NAME>MCNAIRY CHARLES L
<CIK>0001253552
</OWNER-DATA>
<FILING-VALUES>
<FORM-TYPE>4
<ACT>34
<FILE-NUMBER>001-07395
<FILM-NUMBER>04928924
</FILING-VALUES>
<MAIL-ADDRESS>
<STREET1>C/O AVATAR HOLDINGS INC
<STREET2>201 ALHAMBRA CIRCLE 12TH FLOOR
<CITY>CORAL GABLES
<STATE>FL
<ZIP>33134
</MAIL-ADDRESS>
</REPORTING-OWNER>
<ISSUER>
<COMPANY-DATA>
<CONFORMED-NAME>AVATAR HOLDINGS INC
<CIK>0000039677
<ASSIGNED-SIC>1531
<IRS-NUMBER>231739078
<STATE-OF-INCORPORATION>DE
<FISCAL-YEAR-END>1231
</COMPANY-DATA>
<BUSINESS-ADDRESS>
<STREET1>201 ALHAMBRA CIRCLE
<CITY>CORAL GABLES
<STATE>FL
<ZIP>33134
<PHONE>3054427000
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>201 ALHAMBRA CIRCLE
<CITY>CORAL GABLES
<STATE>FL
<ZIP>33134
</MAIL-ADDRESS>
<FORMER-COMPANY>
<FORMER-CONFORMED-NAME>GAC CORP /DE/
<DATE-CHANGED>19801023
</FORMER-COMPANY>
<FORMER-COMPANY>
<FORMER-CONFORMED-NAME>GENERAL ACCEPTANCE CORP
<DATE-CHANGED>19710208
</FORMER-COMPANY>
</ISSUER>
<DOCUMENT>
<TYPE>4
<SEQUENCE>1
<FILENAME>mcnairy7-23_form4ex.xml
<TEXT>
<XML>
<?xml version="1.0"?>
<ownershipDocument>

    <schemaVersion>X0202</schemaVersion>

    <documentType>4</documentType>

    <periodOfReport>2004-07-22</periodOfReport>

    <notSubjectToSection16>0</notSubjectToSection16>

    <issuer>
        <issuerCik>0000039677</issuerCik>
        <issuerName>AVATAR HOLDINGS INC</issuerName>
        <issuerTradingSymbol>AVTR</issuerTradingSymbol>
    </issuer>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001253552</rptOwnerCik>
            <rptOwnerName>MCNAIRY CHARLES L</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>C/O AVATAR HOLDINGS INC.</rptOwnerStreet1>
            <rptOwnerStreet2>201 ALHAMBRA CIRCLE</rptOwnerStreet2>
            <rptOwnerCity>CORAL GABLES</rptOwnerCity>
            <rptOwnerState>FL</rptOwnerState>
            <rptOwnerZipCode>33134</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>0</isDirector>
            <isOfficer>1</isOfficer>
            <isTenPercentOwner>0</isTenPercentOwner>
            <isOther>0</isOther>
            <officerTitle>Exec. V.P., Treasurer &amp; CFO</officerTitle>
        </reportingOwnerRelationship>
    </reportingOwner>

    <derivativeTable>
        <derivativeTransaction>
            <securityTitle>
                <value>Performance Conditioned Restricted Stock Units</value>
            </securityTitle>
            <conversionOrExercisePrice>
                <footnoteId id="F1"/>
            </conversionOrExercisePrice>
            <transactionDate>
                <value>2004-07-22</value>
            </transactionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>A</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>12500</value>
                </transactionShares>
                <transactionPricePerShare>
                    <footnoteId id="F3"/>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>A</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <exerciseDate>
                <footnoteId id="F2"/>
            </exerciseDate>
            <expirationDate>
                <value>2008-12-31</value>
            </expirationDate>
            <underlyingSecurity>
                <underlyingSecurityTitle>
                    <value>Common Stock</value>
                </underlyingSecurityTitle>
                <underlyingSecurityShares>
                    <value>12500</value>
                </underlyingSecurityShares>
            </underlyingSecurity>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>12500</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                </directOrIndirectOwnership>
            </ownershipNature>
        </derivativeTransaction>
    </derivativeTable>

    <footnotes>
        <footnote id="F1">1-for-1</footnote>
        <footnote id="F2">The grant of the units is conditioned upon (i) the closing price of the Issuer's Common Stock being at least $45.00 per share
 for 20 trading days out of 30 consecutive trading days or the Issuer consummating a transaction which results in its
 stockholders receiving cash, securities or other property having a value of at least $45.00 per share, in either case,
 during the period beginning July 23, 2004 and ending December 31, 2008, and (ii) the continued employment of the Reporting
 Person at the time the foregoing condition is satisfied.  Any units granted to the Reporting Person vest in full on December
 31, 2008 or upon the occurrence of a change of control of the Issuer, provided that, in either case, the Reporting Person is
 then employed by the Issuer or its subsidiaries.</footnote>
        <footnote id="F3">Not applicable.</footnote>
    </footnotes>

    <ownerSignature>
        <signatureName>/s/ Charles L. McNairy</signatureName>
        <signatureDate>2004-07-22</signatureDate>
    </ownerSignature>
</ownershipDocument>

</XML>
</TEXT>
</DOCUMENT>
</SUBMISSION>
