This post was originally published in 2012. This is an updated version of that post.
Stone siding might be the most problematic siding that we come across as home inspectors. This stuff is failing left and right all over the country, and most of time the homeowner has no idea when their wall is a rotted mess behind the siding. I'm calling it stone siding because that's what everyone knows it as, but what I'm really referring to is a product called Adhered Masonry Stone Veneer, or AMSV. This is a man-made product that looks like stone siding but performs like stucco. Well, lumpy stucco to be specific.

WE FIND PROBLEMS
While masonry veneer looks great, it's susceptible to the same moisture problems that stucco is susceptible to. We've tested dozens, possibly even hundreds of homes throughout the Twin Cities that have stone veneer siding, and we've found that these homes experience the exact same type of moisture intrusion problems as newer stucco, but worse.
HOW TO DO IT RIGHT
While the newest stucco installations are done quite well, the folks installing stone veneer almost never get it right. When we inspect stone veneer, we use the National Concrete Masonry Association's installation guide. To understand how important this guide is, here's some background on it, directly from one of their engineers:
In short, the installation guide that I referenced above is the standard that should be followed everywhere. This is the way to do it right. Whether or not that standard is adopted will vary throughout the country. And even when it's adopted, enforcement of that standard varies wildly.
Here in Minnesota, our modified version of the International Residential Code made it very easy for us back in 2015. Section R703.12 simply said "Adhered masonry veneer shall be installed in accordance with the manufacturer's instructions." So you download the guide that I linked to above and you follow it. Easy-peasy.
The latest version of the Minnesota State Residential code isn't quite as clear. In the 2020 version of the Minnesota Residential Code, section R703.12 says "Adhered masonry veneer shall be installed in accordance with Section R703.7.1, Article 3.3C of TMS 602 or the manufacturer's instructions." So we have three options.
Option 1, following R703.7.1, doesn't make any sense. This has to be a typo. R703.7.1 simply discusses how to attach lath to a wall. Option 2 requires the purchase of TMS602 for $150. Boo. Option 3 goes back to what we had in 2015, which is to follow the manufacturer's installation instructions. I'll go with that, thank you very much.