Badger's home was first inhabited (7)
I believe the answer is:
settled
'inhabited' is the definition.
(similar in meaning)
'badger's home was first' is the wordplay.
'badger's home' becomes 'sett' (term for a badger's home).
'was first' becomes 'led' (to lead is to go first).
'sett'+'led'='SETTLED'
(Other definitions for settled that I've seen before include "no longer an issue" , "Sank or came to rest" , "Resolved; calm" , "Established" , "Resolved (an argument)" .)