Live is commonly, and properly, used to indicate occupying a house, home, or other place of habitation: "He lived there for ten years." Reside also means to exist permanently or for a time in a certain place, but the term is somewhat pretentious and should be reserved for the act of living in an important or historic setting: "The Governor now resides in a mansion furnished by the state." "When she is in residence in London, the Queen resides at Buckingham Palace." Dwell is somewhat old-fashioned (dwell in peace), but in noun formation (dwelling) is still popular and correct: "His dwelling is a costly cooperative apartment."
Dictionary of problem words and expressions. Harry Shaw. 1975.