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Yes, you can install siding over stucco, but it's crucial to ensure the stucco is in good condition first. Before proceeding, inspect the stucco for any signs of damage, leaks, or mold growth. If you discover water damage, mold, or have ongoing leak issues, it's recommended to remove the stucco completely. This step prevents future problems like mold and pest infestations and allows a professional to repair or replace any damaged sheathing underneath. If the stucco is sound, the installation process involves attaching furring strips to the wall's framing directly through the stucco. The new siding is then installed onto these furring strips. A professional may also need to adjust window and door openings to prevent them from being recessed behind the new siding, which can cause aesthetic issues and create potential leak points.

Many people remove aluminum siding to get to the wood underneath, allowing them to paint, stain, or finish the wood to give the home a brand-new aesthetic. With that in mind, you find plywood and related types of wood underneath aluminum siding, but you also run into fiber cement board, strand board, and a diverse array of other building materials. It depends on the original design of the house. 

Stucco siding is the most energy-efficient option on its own, but you can choose insulated vinyl, insulated metal, or insulated brick or stone facade siding that improves energy efficiency even further. These options include a layer of foam insulation under the siding to reduce heat transfer between your living space and the exterior. If you live in a particularly sunny climate, a reflective option like insulated steel or aluminum siding can maximize efficiency.

Oil-based stains are preferred over latex or water-based varieties because your home's cedar siding must constantly withstand the weather conditions in your location. These stains provide better penetration into the wood to more effectively protect it from UV rays and water infiltration. Oil-based stains are available in transparent, semi-transparent, opaque, or solid-color selections to achieve the look you desire.