The last group of 40 houses derived their name from the stone quarried from a nearby hillside, which became their principal building material. Begun in 1936, they were all completed the following year.
These multi-storied houses were designed in two styles: Colonial and English Tudor. Essentially, their floor plans were the same as the Wagner Houses. The major difference was in the extensive use of stone to replace cinder blocks and some of the framing. Each of these houses had six rooms and had the added attraction of stone fireplaces. They were also provided with all of the conveniences and appliances installed in the Hodgson Houses and Wagner Houses.
Each of these houses also had the outbuildings, so important to the homestead economy: a barn, hog house and poultry house. None of the Stone Houses had basements, but they were provided with root cellars for storing vegetables and canned food.