Dwelling's exceptionally dire scene (9)
I believe the answer is:
residence
'dwelling's' is the definition.
(I've seen this in another clue)
'exceptionally dire scene' is the wordplay.
'exceptionally' indicates an anagram.
'dire'+'scene'='direscene'
'direscene' anagrammed gives 'RESIDENCE'.
(Other definitions for residence that I've seen before include "flat, say" , "bode" , "Place or house where one lives" , "Person's home" , "Dwelling place" .)