                                                                    Exhibit 99.1

        Avatar Holdings Reports Short-Term Impact From Hurricane Charley

    CORAL GABLES, Fla., Aug. 17 /PRNewswire-FirstCall/ -- Avatar Holdings Inc.
(Nasdaq: AVTR) advised today concerning a short-term impact on its business as
a result of Hurricane Charley.  The hurricane has resulted in minor damage to
Avatar's communities and operations in Osceola and Polk counties.  Most damage
was landscape related.  There is very little or no structural damage to Avatar
owned facilities.  All Avatar communities, including Bellalago and Solivita,
have full power, with one exception.

    Osceola County has placed a temporary hold on issuing new home permits to
enable County officials to focus on rebuilding efforts.  Avatar is not aware
of any such action by Polk County.  Currently, approximately 75% of
homebuilding profits generated by Avatar's Central Florida operations are from
Osceola County.  Additionally, certain of Avatar's suppliers are not yet
operational or fully operational.  Avatar anticipates that its schedule for
construction and closing of homes in Polk and Osceola counties will be delayed
by approximately three to six weeks as a consequence of the hurricane.

    Avatar has not yet reopened its sales offices in Polk and Osceola
Counties, as its efforts have been directed at assisting homeowners in its
communities, and in cleanup and repair operations.  Avatar anticipates
reopening for sales within seven to ten days.


    Avatar Holdings Inc. is primarily engaged in real estate operations in
Florida and Arizona.  Its principal real estate operations are conducted at
Poinciana, Solivita and Bellalago in central Florida near Orlando, Harbor
Islands on Florida's east coast, Cory Lake Isles in Tampa, Florida, and at Rio
Rico, south of Tucson, AZ. Avatar's common shares trade on The Nasdaq Stock
Market under the symbol AVTR.


    Certain statements discussed herein constitute "forward-looking
statements" within the meaning of the Private Securities Litigation Reform Act
of 1995.  Such forward-looking statements involve known and unknown risks,
uncertainties and other important factors that could cause the actual results,
performance or achievements of results to differ materially from any future
results, performance or achievements expressed or implied by such forward-
looking statements.  Such risks, uncertainties and other important factors
include, among others: the successful implementation of Avatar's business
strategy; shifts in demographic trends affecting demand for active adult
communities and other real estate development; the level of immigration and
in-migration into areas in which Avatar conducts real estate activities;
international (in particular Latin America), national and local economic
conditions and events, including employment levels, interest rates, consumer
confidence, the availability of mortgage financing and demand for new and
existing housing; access to future financing; geopolitical risks; competition;
changes in, or the failure or inability to comply with, government
regulations; adverse weather conditions and natural disasters; and other
factors as are described in greater detail in Avatar's filings with the
Securities and Exchange Commission, including its Annual Report on Form 10-K
for the fiscal year ended December 31, 2003.



SOURCE  Avatar Holdings Inc.
    -0-                             08/17/2004
    /CONTACT:  Juanita I. Kerrigan of Avatar Holdings Inc., +1-305-442-7000/
    /Web site:  http://www.avatarhomes.com/
    (AVTR)

CO:  Avatar Holdings Inc.
ST:  Florida
IN:  CST RLT
SU:

