So I know that usually, ancient villages and cities are made mostly with wood, and rarely with stone, since stone is inherently more expensive. But, if there is very little lumber around but lots of large rocky areas to work with, would it make sense for a society to develop in such an area, where almost all structures are either carved into rock, set up in existing caves, or made with stone/clay bricks?
Lets assume that the area would work for mining and/or farmland of some kind of crop, but just no lumber.