What dwellings do is that they increase the population. The more population you have, the more money you get from taxes. The more money you get from taxes, the more troops you can train.
Sadly, when I upgrade my dwellings, I lose more food. As you may have noticed, my food bar is red, which means that I am losing more food than I am producing. As I upgrade my dwellings, it will decrease the public order. Public order will either increase or decrease your resource production, and a lower public order will cause a lower resource production.
Hopefully I solve my food problem soon!
-Jeff (Cyberstorm)
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