Residents at home with friends (7)
I believe the answer is:
inmates
'residents' is the definition.
(inmate is a kind of resident)
'home with friends' is the wordplay.
'home' becomes 'in' (to be in is to be (at) home).
'with' means one lot of letters go next to another.
'friends' becomes 'mates' (mate is a kind of friend).
'in'+'mates'='INMATES'
'at' is the link.
(Other definitions for inmates that I've seen before include "Prisoners" , "Inhabitants" , "Ties man (anag.)" .)