''As this is a new mechanic, this section is a work in progress. Check back for frequent updates as more information is discovered.''
It is now possible to build houses in caves. Only the plain version of the stone houses may be built in caves. Cave dwellings can only be built on PvE servers.
In order to do this you would need to activate a [[hammer]] and right click a flat reinforced cave floor tile. The houses can only be built next to cave walls when the house is on deed.