Requirements observed to rise after daughter takes up residence (5)
I believe the answer is:
needs
'requirements' is the definition.
('need' can be a synonym of 'requirement')
'daughter takes up residence' is the wordplay.
'daughter' becomes 'd' (genealogical abbreviation).
'takes' indicates putting letters inside (take can mean to capture or invade).
'up' says the letters should be written in reverse (in down clue: letters go upwards).
'residence' becomes 'seen' (I can't explain this - if you can you should believe this answer much more).
'seen' in reverse letter order is 'nees'.
'd' going inside 'nees' is 'NEEDS'.
'observed to rise after' is the link.
I am not very happy about this link. Some or all of it may be part of another bit of the clue.
Can you help me to learn more?
(Other definitions for needs that I've seen before include "Requirements" , "Things that are wanted" , "Necessitates" , "Necessities" , "Requires or lacks" .)