Because stucco is concrete, it has several significant advantages over siding materials such as wood. First, it is hard and stable—when properly maintained, it will last 50 years or better. And it’s seamless, so the weather doesn’t have gaps and cracks to penetrate. Because it’s a form of masonry, it isn’t inclined to harm from fire, rot, or insects and it does a good job of blocking noise.
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On the downside, stucco can be breakable and, as a result, crack with the settling of the home or with earthquakes. This said stucco is composed today with epoxy, making it more flexible and thus less likely to crack. If it does crack, it can be improved, as concerned in the article How to Fix Stucco.
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One more additional downside is that, in excessively rainy regions, water can soak into stucco, eventually penetrating walls. With any stucco installation, proper flashing is an absolute must to control damage to the interior of the wall. The application must confirm that any water infiltrating through the material will be taken away properly.