Securities and Exchange Commission
                            Washington D.C.  20549

                                  FORM 10-Q

[  X  ]    Quarterly Report Pursuant to Section 13 or 15 (d) of the Securities
Exchange  Act  of  1934  For  the  Period  Ended  September  30,  1998.

[      ]  Transition Report Pursuant to Section 13 or 15 (d) of the Securities
Exchange  Act  of  1934  For  the  Transition  Period From -_______________ to
________________.

Commission  file  number    0-22562

<TABLE>

<CAPTION>

                         CROSSMANN COMMUNITIES, INC.


<S>                                       <C>

INDIANA                                                    35-1880120
----------------------------------------  ---------------------------
 (State of incorporation)                 (I.R.S. Identification No.)
  9202 NORTH MERIDIAN STREET
INDIANAPOLIS, IN                                                46260
----------------------------------------  ---------------------------
(Address of principal executive offices)                   (Zip Code)
(317) 843-9514
----------------------------------------                             
 (Telephone number)
</TABLE>



Indicate  by check mark whether the registrant (1) has filed all documents and
reports  required  to  be  filed  by  Section  13  or 15 (d) of the Securities
Exchange  Act  of  1934  during  the  preceding 12 months (or for such shorter
periods  that  the  registrant was required to file such reports), and (2) has
been subject to such filing requirements for the past 90 days:  Yes   X  No


There  were    11,498,421  Common  shares outstanding as of November 12, 1998.



<PAGE>
                         CROSSMANN COMMUNITIES, INC.
                                  FORM 10-Q

                                    INDEX

Part  I.  Financial  Information.

     Item  1.          Financial  Statements.

Consolidated  balance sheets as of September 30, 1998 (unaudited) and December
31,  1997.

Consolidated  unaudited  statements  of  income  for  the  three months ended 
September  30, 1998 and 1997, and for the nine months ended September 30, 1998
and  1997.

Consolidated  unaudited  statements  of  cash  flows for the nine months ended
September  30,  1998  and  1997.

Notes to consolidated unaudited financial statements for the nine months ended
September  30,  1998  and  1997.

     Item  2.      Management's Discussion and Analysis of Financial Condition
and  Results  of  Operations.


Part  II.  Other  Information

     Item  1.          Legal  Proceedings.

     Item  2.          Changes  in  Securities.

     Item  3.          Defaults  upon  Senior  Securities.

     Item  4.          Submission  of  Matters  to a Vote of Security Holders.

     Item  5.          Other  Information.

     Item  6.          Exhibits  and  Reports  on  Form  8-K.


Signatures.


















                       PART I.  FINANCIAL INFORMATION.

Item  1.    Financial  Statements
<TABLE>

<CAPTION>

                            CROSSMANN COMMUNITIES, INC.
                                  AND SUBSIDIARIES

                            CONSOLIDATED BALANCE SHEETS


<S>                                         <C>                   <C>

                                            SEPTEMBER 30, 1998    DECEMBER 31, 1997
                                            --------------------  ------------------
                                                     (UNAUDITED)
                                            --------------------                    
ASSETS
  Cash and cash equivalents                 $          4,278,853  $        5,526,138
  Retainages                                             629,722             886,766
  Real estate inventories                            205,531,904         153,523,571
  Furniture and equipment, net                         3,879,729           3,310,345
  Investments in joint ventures                       21,290,412          12,354,474
  Goodwill, net                                       14,985,577           3,817,650
  Other assets                                         9,964,997           5,856,819
                                            --------------------  ------------------
Total assets                                $        260,561,194  $      185,275,763
                                            ====================  ==================


LIABILITIES AND SHAREHOLDERS' EQUITY
  Accounts payable and other liabilities    $         24,953,119  $       23,350,353
  Notes payable                                       98,175,817          51,122,431
                                            --------------------  ------------------
Total liabilities                                    123,128,936          74,472,784

Commitments and contingencies

Shareholders' equity:
  Common shares                                       64,471,930          55,548,737
  Retained earnings                                   72,960,328          55,254,242
                                            --------------------  ------------------
Total shareholders' equity                           137,432,258         110,802,979
                                            --------------------  ------------------
Total liabilities and shareholders' equity  $        260,561,194  $      185,275,763
                                            ====================  ==================
<FN>

See  accompanying  notes.
</TABLE>







<TABLE>

<CAPTION>

                                                  CROSSMANN COMMUNITIES, INC.
                                                       AND SUBSIDIARIES

                                         CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)


<S>                   <C>                                 <C>                                 <C>

                      THREE MONTHS ENDED SEPTEMBER 30,    THREE MONTHS ENDED SEPTEMBER 30,    NINE MONTHS ENDED SEPTEMBER 30,
                      ----------------------------------  ----------------------------------  ---------------------------------
                                                   1998                                1997                               1998 
                      ----------------------------------  ----------------------------------  ---------------------------------

Sales of residential
real estate           $                     116,816,658   $                      89,969,648   $                    264,366,387 
Cost of residential
real estate sold                             91,617,357                          71,387,248                        208,316,424 
                      ----------------------------------  ----------------------------------  ---------------------------------
Gross profit                                 25,199,301                          18,582,400                         56,049,963 

Selling, general and
 administrative                              11,678,687                           8,663,860                         30,413,630 
                      ----------------------------------  ----------------------------------  ---------------------------------
Income from
operations                                   13,520,614                           9,918,540                         25,636,333 

Other income, net                             3,196,446                             319,816                          4,699,464 
Interest expense                               (349,752)                           (144,688)                          (964,135)
                      ----------------------------------  ----------------------------------  ---------------------------------
                                              2,846,694                             175,128                          3,735,329 
                      ----------------------------------  ----------------------------------  ---------------------------------

Income before
income taxes                                 16,367,308                          10,093,668                         29,371,662 
Income taxes                                  6,512,994                           4,037,468                         11,665,576 
                      ----------------------------------  ----------------------------------  ---------------------------------
Net income            $                       9,854,314   $                       6,056,200   $                     17,706,086 
                      ==================================  ==================================  =================================

Weighted average
number of common
shares outstanding
     Basic                                   11,482,676                           9,537,205                         11,285,468 
     Diluted                                 11,659,798                           9,721,972                         11,561,786 
                      ==================================  ==================================  =================================
Net income per
common share
     Basic            $                             .86   $                             .64   $                           1.57 
     Diluted          $                             .85   $                             .62   $                           1.53 
                      ==================================  ==================================  =================================


<S>                   <C>

                      NINE MONTHS ENDED SEPTEMBER 30,
                      ---------------------------------
                                                  1997 
                      ---------------------------------

Sales of residential
real estate           $                    206,329,777 
Cost of residential
real estate sold                           164,025,835 
                      ---------------------------------
Gross profit                                42,303,942 

Selling, general and
 administrative                             22,605,602 
                      ---------------------------------
Income from
operations                                  19,698,340 

Other income, net                              870,116 
Interest expense                              (733,938)
                      ---------------------------------
                                               136,178 
                      ---------------------------------

Income before
income taxes                                19,834,518 
Income taxes                                 7,984,938 
                      ---------------------------------
Net income            $                     11,849,580 
                      =================================

Weighted average
number of common
shares outstanding
     Basic                                   9,310,878 
     Diluted                                 9,450,179 
                      =================================
Net income per
common share
     Basic            $                           1.27 
     Diluted          $                           1.25 
                      =================================
<FN>

See  accompanying  notes.
</TABLE>



<TABLE>

<CAPTION>

                                   CROSSMANN COMMUNITIES, INC.
                                         AND SUBSIDIARIES
                        CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)


<S>                                                   <C>                    <C>

                                                      NINE MONTHS            NINE MONTHS
                                                      ENDED SEPTEMBER 30,    ENDED SEPTEMBER 30,
                                                      ---------------------  ---------------------
                                                                      1998                   1997 
                                                      ---------------------  ---------------------
OPERATING ACTIVITIES:
Net Income                                            $         17,706,086   $         11,849,580 
Adjustments to reconcile net income to net cash
  flows from operating activities:
    Depreciation                                                   680,893                459,214 
    Amortization                                                   144,317               (326,017)
    Equity in earnings of affiliates                            (1,530,949)
    Gain on sale of equipment                                          -0-                 (2,651)
    Cash provided (used) by changes in:
      Retainages                                                   257,044                531,715 
      Amounts due from related parties                              60,558                (13,363)
      Real estate inventories                                  (29,330,496)           (35,395,493)
      Other assets                                              (3,114,761)            (1,503,699)
      Accounts payable                                          (5,841,449)             4,318,271 
      Accrued expenses and other liabilities                     5,897,113              1,972,721 
                                                      ---------------------  ---------------------
Net cash flows from operating activities                       (15,071,644)           (18,109,722)

INVESTING ACTIVITIES:
Purchases of furniture and equipment                              (903,854)              (691,423)
Proceeds from disposition of furniture and equipment                   -0-                  2,651 
Investments in joint ventures                                   (7,404,989)            (1,730,404)
Business acquisitions                                           (9,669,888)               623,825 
                                                      ---------------------  ---------------------
Net cash used by investing activities                          (17,978,731)            (1,795,351)

FINANCING ACTIVITIES:
Proceeds from bank borrowing                                   136,620,946            108,835,644 
Principal payments on bank borrowing                          (155,341,000)          (118,235,000)
Proceeds from issuance of senior notes                          50,000,000                    -0- 
Payments on notes and long-term debt                              (105,605)              (456,011)
Proceeds from sale of common shares                                628,749             29,809,425 
                                                      ---------------------  ---------------------
Net cash provided by financing activities                       31,803,090             19,954,058 
                                                      ---------------------  ---------------------

Net decrease in cash and cash equivalents                       (1,247,285)                48,985 
Cash and cash equivalents at beginning of period                 5,526,138                100,000 
                                                      ---------------------  ---------------------
Cash and cash equivalents at end of period            $          4,278,853   $            148,985 
                                                      =====================  =====================
<FN>

See  accompanying  notes.
</TABLE>



CROSSMANN  COMMUNITIES,  INC.  AND  SUBSIDIARIES

NOTES  TO  UNAUDITED  CONSOLIDATED  FINANCIAL  STATEMENTS


1.    BASIS  OF  PRESENTATION

Crossmann  Communities,  Inc.  (the  "Company")  is  engaged  primarily in the
development,  construction,  marketing and sale of new single-family homes for
first-time  and  first move-up buyers.  The Company also acquires and develops
land  for  construction  of  such  homes and originates mortgage loans for the
buyers.    The  Company  operates  in  Indianapolis,  Ft. Wayne and Lafayette,
Indiana;  Cincinnati,  Columbus  and  Dayton,  Ohio; Louisville and Lexington,
Kentucky;  Memphis,  Tennessee; and in Myrtle Beach, South Carolina.  In 1998,
Crossmann  has also entered Charlotte, North Carolina and Nashville, Tennessee
with  start-up operations; no revenue has yet been generated in these markets.

The  accompanying  unaudited  consolidated  financial  statements  have  been
prepared  in  accordance with the instructions to Form 10-Q and  Article 10 of
Regulation  S-X.  Accordingly, the unaudited consolidated financial statements
do  not  include  all  of  the information and footnotes required by generally
accepted  accounting  principles  for  complete  financial statements.  In the
opinion  of  the  Company,  all  adjustments  (consisting  of normal recurring
accruals)  considered  necessary  to present fairly the consolidated financial
statements  have  been  included.

ITEM  2.    MANAGEMENT'S  DISCUSSION  AND ANALYSIS OF FINANCIAL CONDITIONS AND
RESULTS  OF  OPERATIONS.

Management's  discussion  and  analysis  may  include certain "forward-looking
statements,"  as  defined  in the Private Securities  Litigation Reform Act of
1995.    Such  statements  may involve unstated risks, uncertainties and other
factors  that  may  cause  actual  results  to  differ  materially.

The Company's business and the homebuilding industry in general are subject to
changes  in  economic  conditions,  including,  but not limited to, employment
levels,  interest rates, the availability of credit, and consumer confidence. 
The    Company's  success over the past several years has been influenced by a
variety  of  factors  including favorable economic conditions in its principal
markets,  the  availability of capital for expansion, and low interest rates. 
To  the  extent  these  conditions  do  not  continue, the Company's operating
results  may  be  adversely  affected.

The  Company's  business  is  also subject to weather-related seasonal factors
that  can  affect  quarter-to-quarter  results of operations.  Adverse weather
conditions  during  the first and second quarters of the year usually restrict
site  development work, and construction limitations generally result in fewer
closings  during  this period.   Results of operation during the first half of
the year also tend to reflect increased costs associated with adverse weather.
 Warmer,  dryer  weather  during the second half of the year generally permits
higher  closings  and  greater  field  efficiency.

RESULTS  OF OPERATION:  THREE MONTHS ENDED SEPTEMBER 30, 1998  COMPARED TO THE
THREE  MONTHS  ENDED  SEPTEMBER  30,  1997.

Sales  increased    approximately    $26.8 million, or 29.8%, to approximately
$116.8  million in  the third quarter of 1998 from approximately $90.0 million
for  the  same  period  in  1997.   Sales were higher primarily as a result of
increased  home closings; 1,031 homes were closed in the third quarter of 1998
compared  to  797  homes closed during the third quarter of 1997.  Part of the
increase  in  closings  is  attributable  to  the  contribution of closings in
Crossmann's  new  markets: Memphis, entered via acquisition in September 1997,
generated 52 closings in the third quarter of 1998;  Myrtle Beach,  entered by
acquisition  in  May  1998,  contributed  101  closings.   Excluding these new
markets, the Company closed 81 more units in the third quarter of 1998 than in
the  third quarter of 1997, an increase of 10.2%.  Sales also increased due to
a  higher  average  selling  price:  $113,304 in 1998, compared to $112,885 in
1997.

 Gross  profit  increased  approximately  $6.6  million  ,  or  35.6%,  to
approximately  $25.2  million for the third quarter of 1998 from approximately
$18.6  million  for the third quarter of 1997.  This represents a gross margin
of  21.6%  of sales in the third quarter of 1998 as compared to 20.7% of sales
in  the  third quarter of 1997.   This increase was due to generally improving
margins  in  Crossmann's  more  established  markets.  Moderate lumber prices,
volume  purchasing  arrangements  and  low  interest  rates all contributed to
better  margins.

Selling, general and administrative expenses increased $3.0 million, or 34.8%,
to  approximately  $11.7  million  for  the  third  quarter  of  1998  from
approximately  $8.7  million  for  the  third  quarter of 1997.  This increase
reflects  increased sales commissions on the higher sales volume and increased
overhead  incurred  to  achieve  higher  production.    Selling,  general  and
administrative  expenses,  increased  as a percentage of sales to 10.0% in the
third  quarter  of  1998  from 9.6% in the third quarter of 1997.  Part of the
increase  in  general and administrative spending related to start up costs in
Nashville and Charlotte.  These two new markets will generate revenue in 1999.

Other income net of expenses increased $2.7 million for the three months ended
September  30,  1998,  to approximately  $2.8 million in 1998 from $175,128 in
1997.    The increase was due to improved earnings from land development joint
ventures  and  other  miscellaneous  sources. Trinity Homes LLC ("Trinity"), a
homebuilding  joint  venture  in  Indianapolis,  generated  approximately $1.0
million  in  income  to  Crossmann  during  this  period.

Income  before   income taxes increased approximately $6.3 million , or 62.2%,
to approximately $16.4 million in the third quarter of 1998 from approximately
$10.1 million in the third quarter of 1997.   The company's effective tax rate
was  39.8%  in  the  third  quarter  of 1998 as compared to 40.0% in the third
quarter  of  1997.  Net income increased approximately $3.8 million, or 62.7%,
to  approximately $9.9 million in the third quarter of 1998 from approximately
$6.1  million  in  the  third  quarter of 1997.  Net income as a percentage of
sales  increased  to  8.4% in the third quarter of 1998 from 6.7% in the third
quarter  of  1997.

RESULTS  OF  OPERATION:  NINE MONTHS ENDED SEPTEMBER 30, 1998  COMPARED TO THE
NINE  MONTHS  ENDED  SEPTEMBER  30,  1997.

Sales  increased    approximately    $58.0 million, or 28.1%, to approximately
$264.4 million for the nine months ended September 30, 1998 from approximately
$206.3  million  for  the  nine  months  ended September 30, 1997.  Sales were
higher  primarily  as  a  result  of increased home closings; 2,322 homes were
closed  in  the  nine  months ended September 30, 1998 compared to 1,833 homes
closed  during  the nine months ended September 30, 1997.  Selling prices were
also  higher,  approximately  $113,900  per  home  for  the  nine months ended
September  30,  1998  as  compared  to  approximately $112,600 during the same
period  in  1997.    Part  of  the increase in closings is attributable to the
contribution  of  closings  in Crossmann's new markets: Lexington, entered via
acquisition  in  June  1997,  and Memphis, entered by acquisition in September
1997,  generated 193 closings in the first nine months of 1998.  Myrtle Beach,
entered by acquisition in May 1998, contributed 128 closings.  Excluding these
new  markets,  the  Company  closed 168 more units in the first nine months of
1998  than  in  the  first  nine  months  of  1997,  an  increase  of  9.2%

Gross profit increased approximately $13.7 million, or 32.5%, to approximately
$56.0  million for the nine months ended September 30, 1998 from approximately
$42.3  million for the nine months ended September 30, 1997.   This represents
a  gross margin of 21.2% of sales in the first nine months of 1998 as compared
to  20.5% of sales in the first nine months of 1997.  This improvement was due
to  generally  improving  margins  in  Crossmann's  more established markets. 
Moderate  lumber prices, volume purchasing arrangements and low interest rates
contributed  to  better  margins.

Selling,  general  and  administrative  expenses  increased approximately $7.8
million,  or  34.5%,  to approximately $30.4 million for the nine months ended
September  30, 1998 from approximately $22.6 million for the nine months ended
September 30, 1997.  This increase reflects increased sales commissions on the
higher  sales  volume  and  to  higher  overhead  required  to  achieve higher
production.    Selling, general and administrative expenses as a percentage of
sales  increased  to  11.5% in the first nine months of 1998 from 11.0% in the
first  nine  months  of  1997.

Other  income  net  of  expenses increased approximately $3.6 million  for the
nine  months  ended  September 30, 1998, to approximately $3.7 million in 1998
from  $136,178  in  1997.  Trinity Homes LLC ("Trinity"), a homebuilding joint
venture  in Indianapolis, contributed approximately  $1.6 million in income to
Crossmann  during  this  period.

Income  before income taxes increased approximately $9.5 million, or 48.1%, to
approximately $29.4 million for the  nine months ended September 30, 1998 from
approximately $19.8 million for the nine months ended September 30, 1997.  The
Company's  effective  tax  rate  was 39.7% in the first nine months of 1998 as
compared  to  40.3%  in  the  first nine months of 1997.  Net income increased
approximately  $5.9  million,  or 49.4%, to approximately $17.7 million in the
first  nine  months of 1998 from approximately $11.8 million in the first nine
months of 1997.  Net income as a percentage of sales increased to 6.7% in 1998
from  5.7%  in  1997.

CHANGES  IN  FINANCIAL  POSITION

Retainages
Retainages decreased $257,044 in the first nine months of the year, or 29.0%. 
This change is seasonal.  Mortgage companies retain escrows for the completion
of  exterior  landscape  items.    As weather permits, yards are completed and
retainages  are  released  to  the Company during the second half of the year.

Inventory
The Company increased its investment  in real estate inventories approximately
$52.0 million, or 33.9%, from their December 31, 1997 level.  The expansion in
inventory  reflects heavy building activity on homes in backlog, many of which
are  expected  to  close  by  year end.  It also reflects land acquisition and
development  activity  in preparation for 1999 production.  This increase also
reflects  planning  for  additional  capacity for closings in 1999 and beyond.

Investments  in  Joint  Ventures
Investments  in  and  advances  to joint ventures increased approximately $8.9
million, or 72.3%, during the first nine months of 1998.  This level increased
in  part due to strong earnings of the joint ventures, as yet undistributed to
Crossmann  but  remployed within the ventures.  Most of these arrangements are
entered  into  with  outside  land  owners  or  developers  for the purpose of
developing  raw  land  into finished lots for the Company's use.  The greatest
financial commitment, however, is to the Trinity joint venture, an arrangement
entered  with another homebuilding company for the purpose of building larger,
more  expensive  homes  in  Indianapolis.    The investment in and advances to
Trinity  total  approximately  $10.0  million.

Goodwill
Goodwill increased approximately $11.2 million or 292.5% during the first nine
months  of  1998.  Of this increase, approximately $3.2 million was related to
the acquisition of Paragon Properties, LLC ("Paragon"), a Memphis homebuilder,
on  May  5,  1998;  $7.8  million  was related to the acquisition of Pinehurst
Builders, Inc.("Pinehurst"), a homebuilder in Myrtle Beach, South Carolina, on
May  29,  1998.

Notes  Payable
Notes  Payable  increased  approximately  $47.1  million during the first nine
months  of  1998  as  borrowings were used to finance real estate inventories,
acquisitions,  and  joint  venture  investments.


CAPITAL  RESOURCES  AND  LIQUIDITY

At  September 30, 1998, the Company had approximately $4.3 million in cash and
cash  equivalents.

The  Company's  primary  uses  of  capital are home construction costs and the
purchase and development of land .  Real estate inventories were approximately
$205.5  million,  or 78.9% of total assets, at September 30, 1998, compared to
$153.5 million or 82.9% of total assets at December 31, 1997.  Capital is also
used  for  the addition and improvement of equipment used in administering the
business  and  for  model  home  furnishings.

Cash  expenditures  are financed with cash from operations and with borrowings
on  a $60.0 million unsecured line of credit with Bank One, Indiana, N.A.  The
line  of  credit  bears interest at the bank's prime lending rate, but permits
portions  of the outstanding balance to be committed for fixed periods of time
at  a  rate  equal to LIBOR plus 1.45%.  The credit facility matures March 31,
2000.

The  Company also has approximately $19.4 million of senior notes outstanding,
payable  through  2004 at a fixed interest rate of 7.625%, payable quarterly. 
On  December  21,  1998,  the  Company  will make a scheduled reduction in the
outstanding  principal balance of the senior notes of $2,777,778.  On June 11,
1998 the Company issued $50.0 million in new notes, payable over 10 years at a
fixed  interest rate of 7.75%, payable quarterly.  Annual principal reductions
of  $8,333,334  begin  June  11,  2003.

The  note  agreements  and  the  bank  line  of credit require compliance with
certain financial and operating covenants and place certain limitations on the
Company's  investments  in  land and unconsolidated joint ventures.  They also
limit  payments  of  cash  dividends  by  the  Company.

The  Company's  credit arrangements are expected to provide adequate liquidity
for  planned  internal growth and capital expenditures.  In the event that the
Company seeks to accelerate growth through the acquisition of large parcels of
land  or  of  other homebuilding companies, additional capital may be needed. 
The  Company  believes that such capital could be obtained from banks or other
financing alternatives, from the issuance of additional shares, or from seller
financing;  however, there can be no assurances that the Company would be able
to  secure  the  necessary  capital.

BACKLOG

The  Company generally builds only upon the execution of a sales contract by a
customer  and  after  approval of financing, although it also builds a limited
number  of  homes  on  speculation.    The standard sales contract used by the
Company provides for an earnest money deposit of $1,000.  The contract usually
includes  a termination provision under which the earnest money is refunded in
the  event  that mortgage financing is not available on terms specified in the
contract,  and  may include other contingencies.  Cancellations by buyers with
approved  financing  occur  infrequently.

A  home  is  included  in  "backlog" upon execution of a sales contract by the
customer,  and  sales  and  cost  of  sales  are  recognized when the title is
transferred  and  the home is delivered to the buyer at "closing."  Backlog at
September  30,  1998  was  2,346  homes  with  an  aggregate  sales  value  of
approximately  $266.0 million, compared to 1,509 homes with an aggregate sales
value of approximately $166.0 million at September 30, 1997.  The  increase in
the  number  of homes in backlog is approximately 55.5%.   The increase is due
in  part  to  backlog  acquired  in its acquisitions of Paragon and Pinehurst,
totaling 283 units.  Excluding acquisitions, Crossmann had new orders of 3,305
in the first nine months of the year compared to 2,336 in 1997, an increase of
41.5%.  Orders for the third quarter are particularly strong; 1,143 new orders
during  the  third  quarter  of  1998, compared to 666 in the third quarter of
1997, an increase of 71.6%.  Management attributed the unusually strong orders
in  the  third quarter to strong employment, low interest rates, low inflation
and  improved  financing  programs  available  to  buyers.


OTHER  BUSINESS  CONDITIONS
Inflation
The Company, as well as the homebuilding industry in general, may be adversely
affected  during  periods  of high inflation, primarily because of higher land
and  construction  costs.    To date, inflation has not had a material adverse
effect  on  the  Company's  business,  financial  condition,  and  results  of
operations.    However,  there  is no assurance that inflation will not have a
material adverse impact on the Company's future business, financial condition,
and  results  of  operations.

Weather
The  Company's  business  is subject to weather-related seasonal factors which
can  affect  quarterly results of operations.  The unusually strong backlog at
September  30,  1998  cannot  be  completed  before  winter  weather  slows
construction  during  the  fourth  quarter.    Although  the  Company plans an
aggressive  production  schedule,  it  will  probably  begin  1999 with a high
backlog.    This  is  a  favorable  indicator  for  closing  volume  in  1999.
Year  2000  Readiness
Crossmann's  management believes that the Company's core selling, building and
closing  operations  are  largely unautomated and would continue uninterrupted
even  in  the  event  of  minor  Year  2000  problems.   As for accounting and
administration,  the manufacturer of the computer on which Crossmann's central
accounting  and  management information systems resides has certified that its
hardware and operating system software are Year 2000 compliant.  The Company's
applications  software,  developed  internally  by  programmers  in-house,  is
largely  not  date-dependent;  these  employees  are currently working, in the
course  of normal maintenance to the system, to identify and correct those few
instances where date information is used, to handle the date change properly. 
The  cost  of  such maintenance is not material; the review is scheduled to be
complete  by  the  end  of  the  1998  calendar  year.

Equipment  and  software  peripheral  to  Crossmann's central system are being
tested  for  Year  2000 compliance.  Any replacements or upgrades required are
expected  to be complete by mid-1999.  The cost and timing of such upgrades to
hardware  and software are not deemed to be materially different than normally
scheduled  upgrades.

Management's  contingency  plans,  which are intended to enable the Company to
continue  to  operate  normally,  include performing some procedures manually,
changing  suppliers,  if  necessary,  and  repairing  or obtaining replacement
systems.


                         PART II.  OTHER INFORMATION

The  following items for which provision is made in the applicable regulations
of  the  Securities and Exchange Commission are not required under the related
explanations  or  are  inapplicable  and  therefore  have  been  omitted:

Item  1.    Legal  Proceedings.
Item  2.    Changes  in  Securities
Item  3.    Defaults  Upon  Senior  Securities.
Item  4.    Submissions  of  Matters  to  a  Vote  of  Security  Holders.
Item  5.    Other  Information.

Item  6.    Exhibits  and  Reports  on  Form  8-K.
<TABLE>

<CAPTION>

a)  Exhibits


<S>      <C>

Exhibit  Description of Exhibit
Number
3.1      Amended and restated Articles of Incorporation of Crossmann Communities, Inc.
         (Incorporated by reference to Exhibit 3.1 to Form S-1 Registration Statement No. 33-
                                                                                       68396.)
3.2      Bylaws of Crossmann Communities, Inc. (Incorporated by reference to Exhibit 3.2
         to Form S-1 Registration Statement No. 33-68396.)
4.1      Specimen Share Certificate for Common Shares.  (Incorporated by reference to
         Exhibit 2.9 to Form S-1 Registration Statement No. 33-68396.)
10.2     1993 Outside Director Stock Option Plan.  (Incorporated by reference to Exhibit 10.2
         to Form S-1 Registration Statement No. 33-68396.)
10.3     1993 Employee Stock Option Plan, As amended as of May 22, 1996.  (Incorporated
         by reference to Exhibit 10.3 to Form 10-Q dated August 13, 1996.)
10.37    Note Agreement dated as of December 19, 1995, $25,000,000 7.625% Senior Notes
         due December 9, 2004, by Crossmann Communities, Inc., et al. (Incorporated by
         reference to Exhibit 10.37 to From 10-K dated March 18, 1996.)
10.38    7.625% Senior Note due December 19, 2004, issued to Combined Insurance
         Company by Crossmann Communities, Inc., et al.  (Incorporated by reference to
         Exhibit 10.38 to Form 10-K dated March 18, 1996.)
10.39    7.625% Senior Note due December 19, 2004, issued to Minnesota Mutual Life
         Insurance company by Crossmann Communities, Inc., et al.  (Incorporated by
         reference to Exhibit 10.39 to Form 10-K dated March 18, 1996.)
10.40    Amended and Restated Credit Agreement, dated December 22, 1995, by and between
         Crossmann Communities, Inc., et al. and Bank One, Indianapolis N.A. (Incorporated
         by reference to Exhibit 10.40 to Form 10-K dated March 18, 1996.)
10.41    First Amendment to Amended and Restated Credit Agreement, dated March 27, 1997,
         by and between Crossmann Communities, Inc. et al. and Bank One, Indiana N.A.
         (Incorporated by reference to Exhibit 10.41 to Form 10-Q dated May 13, 1997.)
10.42    Promissory Note, dated March 27, 1997, by and between Crossmann Communities,
         Inc. et al. and Bank One, Indiana, N.A.  (Incorporated by reference to Exhibit 10.40
         to Form 10-Q dated May 13, 1997.)
10.43    Second Amendment to Amended and Restated Credit Agreement, dated March
         31,1998, by and between Crossmann Communities, Inc. et al. and Bank One, Indiana
         N.A. (Incorporated by reference to Exhibit 10.51 to Form 10-Q dated May 13, 1997.)
10.44    Third Amendment to Amended and Restated Credit Agreement, dated May 13, 1998,
         by and between Crossmann Communities, Inc. et al. and Bank One, Indiana, N.A.
         (Incorporated by reference to Exhibit 10.44 to Form 10-Q dated August 14, 1998.)
10.45    Form of 7.75% Senior Note due June 11, 2008, issued to various insurance companies
         by Crossmann Communities, Inc. et al.  (Incorporated by reference to Exhibit 10.45
         to Form 10-Q dated August 14, 1998.)
10.46    Note Agreement dated as of June 11, 1998, $50,000,000 7.75% Senior Notes due
         June 11, 2008, by Crossmann Communities, Inc., et al.  (Incorporated by reference
         to Exhibit 10.46 to Form 10-Q dated August 14, 1998.)
10.47    Asset Purchase Agreement, dated May 5, 1998 by and among Crossmann
         Communities, Inc., Crossmann Communities of Tennessee, LLC, Paragon Properties,
         LLC, W. V. Richerson, Jr. and William R. Hyneman.   (Incorporated by reference to
         Exhibit 10.47 to Form 10-Q dated August 14, 1998.)
10.48    Employment contract dated May 5, 1998, by and among Crossmann Communities of
         Tennessee, LLC and W.V. Richerson, Jr.   (Incorporated by reference to Exhibit
         10.48 to Form 10-Q dated August 14, 1998.)
10.49    Agreement and Plan of Merger, dated May 29, 1998 by and among Crossmann
         Communities, Inc., Crossmann Communities of North Carolina, Inc., Pinehurst
         Builders, Inc., Buck Creek Development, Inc., CTS Communications, Inc., Beach
         Vacations, Inc., James T. Callihan, Ralph R. Teal, Jr., Jeffrey H. Skelley, and H.
         Gilford Edwards.  (Incorporated by reference to Exhibit 10.49 to Form 10-Q dated
         August 14, 1998.)
10.50    Purchase agreement dated May 29,1998, by and between Crossmann Communities
         of North Carolina, Inc., True Blue Development, LLC, and James T. Callihan, Ralph
         R. Teal, Jr., Jeffrey H. Skelley, Charles D. Floyd and Ralph Jones.   (Incorporated
         by reference to Exhibit 10.50 to Form 10-Q dated August 14, 1998.)
10.51    Agreement and Plan of Merger, dated May 29, 1998, by and among Crossmann
         Communities, Inc., Crossmann Communities of North Carolina, Inc., River Oaks
         Golf Development Corporation and James T. Callihan, Ralph R. Teal, Jr., Jeffrey H.
         Skelley, Charles D. Floyd and Ralph C. Jones.    (Incorporated by reference to
         Exhibit 10.51 to Form 10-Q dated August 14, 1998.)
10.52    Employment contract dated May 29, 1998, by and among Crossmann Communities
         of North Carolina, Inc., Crossmann Communities, Inc. and H. Gilford Edwards.
         (Incorporated by reference to Exhibit 10.52 to Form 10-Q dated August 14, 1998.)
10.53    Employment contract dated May 29, 1998, by and among Crossmann Communities
         of North Carolina, Inc., Crossmann Communities, Inc. and James T. Callihan.
         (Incorporated by reference to Exhibit 10.53 to Form 10-Q dated August 14, 1998.)
10.54    Employment contract dated May 29, 1998, by and among Crossmann Communities
         of North Carolina, Inc., Crossmann Communities, Inc. and Ralph R. Teal, Jr.
         (Incorporated by reference to Exhibit 10.54 to Form 10-Q dated August 14, 1998.)
10.55    Employment contract dated May 29, 1998, by and among Crossmann Communities
         of North Carolina, Inc., Crossmann Communities, Inc. and Jeffrey H. Skelley.
         (Incorporated by reference to Exhibit 10.55 to Form 10-Q dated August 14, 1998.)
19.1     Lease by and between Pinnacle Properties LLC ("Landlord") and Crossmann
         Communities, Inc. (Tenant"), 9202 North Meridian Street, Suite 300, Indianapolis,
         Indiana 46260, executed April 18, 1994.  (Incorporated by reference to Exhibit 19.1
         to Form 10-Q dated August 12, 1994.)
27.1     Financial Data Schedule for the quarter ended September 30, 1998.
</TABLE>






(b)  Reports  on  Form  8-K.

     None.


                                  SIGNATURES


     Pursuant  to  the  requirements of Sections 13 or 15(d) of the Securities
and  Exchange  Act  of  1934, the registrant has duly caused this report to be
signed  on  its  behalf  by  the  undersigned,  thereunto  duly  authorized.



CROSSMANN  COMMUNITIES,  INC.


/s/  Jennifer  A.  Holihen
Jennifer  A.  Holihen
Director,  Chief  Financial  Officer;
Treasurer;  Secretary;
(Principal  Financial  and  Accounting  Officer)





Dated:    November  12,  1998