Dream House currently has 12 rooms - each of which hosts a unique horror that the entity can utilise against those who would seek to either harm it or escape its clutches: Dream House appears to be an immortal as well since the home has rebuilt itself numerous times even after being burnt to the ground and despite all the terrible events that have occured in its walls the inhabitants of the nearby suburbia seem oblivious to the danger it represents.
The true extent of Dream House's power may never truly be known to mortal creatures and even Charon has stated that he found the Dream House to be an enigma the likes of which even the reapers' could not explain.
Dream House (under the guise of Hillside Manor) was "built" in 1805 by a wealthy couple by the name of Marcus and Elizabeth Belle - or so the inhabitants of the neighboring suburbia have believed, in reality Dream House simply rose from the ground one evening and lured its first two victims into its halls.
For two years Marcus and Elizabeth lived in the Dream House and grew reclusive, rarely leaving the house and rumors of black magic and depravity spread - during this time two extra rooms were formed and a mere day after completion of these rooms both Marcus and Elizabeth died of self-induced poisoning.
Dream House remained empty for five years afterwards until it was bought by a widower by the name of Thomas Bray - much like the tragic Belles he began work almost immediately on a new room and grew reclusive: refusing to reply to letters from friends or family and spending most of his days occupying himself with the care of Dream House.
A year later Thomas Bray threw himself from a top-floor window to his death, authorities that arrived at the scene were puzzled as his body showed signs of struggle and fright - as if he had leapt to his death out of desperation to escape some assailant: a short enquiry followed but was soon abandoned due to lack of witnesses or suspects and the fact that many authorities who entered the house to search for clues grew ill.
For many years following the Thomas Bray case Dream House remained vacant, with new owners mysteriously vanishing after a few months or leaving the house never to return and refusing to talk about what happened inside.
In 1987 Dream House was burnt to the ground by a group of unidentified vigilantes who claimed to be "purging" the community of evil spirits - however the house was "rebuilt" within a year and many of the vigilantes involved in the arson would develop severe cases of fever and be plagued with recurring nightmares that would cause some of them to be put into psychiatric wards.
Since its original "founding" in 1805 Dream House (still going under the guise of Hillside Manor) grew from 5 rooms to 12 - each room having been built by one of the former inhabitants of the home, who would die shortly after their completion.
Confrontations With Parasomnia
Dream House would have its first conflict with its recurring opponent, Parasomnia, when the former lord of sleep was called upon to help a young girl who was being plagued by nightmares surrounding her family and the mysterious "Hillside Manor" - Parasomnia entered Dream House to try and locate the source of the young girl's distress, suspecting demonic involvement, to her surprise she found the source of the troubles to come from the house itself and she attempted to fend off the fiend but found herself engaging in a battle of wits against the much more powerful entity - eventually she struck a blow to Dream House by setting part of the building on fire before making her escape.
A few months later Parasomnia found herself drawn back to Dream House as the building was luring teens into its halls with the intent of hosting murderous parties - after helping to free some of the possessed youths Parasomnia once again engaged her old foe in a battle of wits and Dream House expressed its hatred of her and its intent to dispose of her should she ever get in its way again: once again Parasomnia managed to escape with her life.
It would be a year until the two met again, this time Parasomnia was trying to rescue an old man who was being tormented by visions of his dead wife and once again found the source to be Dream House, who was hoping to exploit the old man's grief to lure him into its halls: when Parasomnia confronted Dream House again the house literally swallowed her whole, tossing her into the basement where she fought against the house's malevolent "brain" - managing to pierce it and forcing the house to release her as it writhed in pain, causing a tremor that brought the building toppling down.
Confrontation With Charon
Two years after its apparent destruction in the battle with Parasomnia the mysterious Dream House rebuilt itself and got into a confrontation with the earth-bound spectre known as Charon when he found out about the house's plan to manipulate the inhabitants of the neighboring suburbia into forming a murderous cult via illusions and trickery - Charon watched as Dream House manipulated the people of suburbia and struck out just as the brainwashed inhabitants prepared to sacrifice two young women inside the halls of "Hillside Manor": this angered Dream House, who attacked Charon - breaking its hold on the inhabitants of suburbia, who fled the scene, Charon managed to fend off Dream House but was tossed out of the house by the entity before he could strike a killing blow to the creature.
Charon decided to leave Dream House be as he could sense the souls of many trapped people inside its form and didn't wish to damn them too, however as an act of "mercy" he erased the memories of Dream House's true nature from the inhabitants of suburbia - deciding that they would be much happier and safer staying ignorant to the danger that lay next door.
Confrontations With Hubris
Several months after the battle with Charon the Dream House would target the current host for the spirit of vengeance known as Hubris, plaguing the vigilante with nightmares and visions in an attempt to lure him into its halls and Hubris found himself engaging Dream House in a psychic battle of sorts: wrestling for control of his sanity and soul, ultimately Hubris was truimphant and Dream House was resigned to defeat - though it declared that some day it would return for Hubris, when he was at his weakest.
Powers & Abilities
Dream House is a living entity that takes on the form of a house, it has 12 rooms which represent its known abilities and of these 5 are considered "core rooms" and act much as demonic organs for the vast entity - Dream House gains power via trapping the souls of those who have died within its halls and a new room is formed for each successful capture, in effect Dream House gains a new ability for every soul it manages to capture. In addition to the powers given to Dream House by its rooms it is also capable of rebuilding itself from physical destruction, making it virtually immortal.
Room 1 - Main Hall (functions as the house's voice-box and means of communicating with the mortal world: people who enter this room hear the voice of Dream House inside their minds and can experience terrible hallucinations brought on by the house's attempts to lure them further into its halls, this room can manifest a giant face when the house wishes to show itself to "lesser" beings)
Room 2 - Dining Room (functions as the house's stomach and means of containing spiritual-energy which it feeds on: people who enter this room often feel ill and lethargic as their life-essences are slowly drained from their bodies, if they stay too long they will collapse and die - upon physical death of a victim this room forms astral-chains that bind to the soul of an individual and keeps them in place as the house feeds on their spiritual-energy, creating new rooms from this energy)
Room 3 - Basement (functions as the house's brain and as such is one of the most important "rooms" - people rarely enter this room but when they do they are often overwhelmed with nightmares, feeling of dread and fits of madness as the house floods their mind with corruption, this room can manifest a giant misshapen brain when the house wishes to show itself to "lesser" beings)
Room 4 - Master Room (functions as the house's ears and the means by which it can listen into the thoughts and words of others: people who enter this room are often plagued with deafening screeching sounds, maddenning whispers and either temporary deafness or a sudden, often unbareable, heightening of hearing.)
Room 5 - Bathroom (functions as the house's immune-system and means by which it deals with hostile lodgers: people who enter this room are often attacked by bizarre monsters formed out of furniture and brought to life via the house's will - this room can manifest itself as a horrible disembodied hand when the house wishes to show itself to "lesser" beings)
Room 6 - Storage Room (the room that was formed by Marcus Belle's trapped soul and represents his obsession with order: people who enter this room find themselves obsessively tidying the room to the point of exhaustion only to repeat the process continually until they either pass out or go mad)
Room 7 - Guest Room (the room that was formed by Elizabeth Belle's trapped soul and represents her desire for friendship: people who enter this room find themselves developing feelings of depression and loniliness that gradually increases the longer one stays)
Room 8 - Nursery (the room that was formed by Thomas Bray's trapped soul and represents his desire for a family: people who enter this room find themselves regressing to childhood fantasies and behaviors that worsen to the point of irreversable madness if one does not escape the room within a day)
Room 9 - Green Room (a room that was formed by the trapped soul of a groundskeeper and represents his love of plants: people who enter this room find themselves lost in a maze of hedges and can often find themselves wandering in the maze for years)
Room 10 - Dark Room (a room that was formed by the trapped soul of a journalist and represents his obsession with photography: people who enter this room often find themselves haunted by photographs of themselves and loved ones in horrific tragedies which occur shortly after they gaze upon the photographs)
Room 11 - Library (a room that was formed by the trapped soul of a caretaker and represents her love of books: people who enter this room will often find themselves reading obsessively and grow intensely angered by even the smallest of sounds - to the point of murderous rage)
Room 12 - Games Room (a room that formed by the trapped soul of a squatter and represents his love of games: people who enter this room often lose time as they play games for hours at a time, at the same time the air becomes increasingly putrid and diseased - causing those who stay too long to develop severe illness)
Dream House is a malevolent creature of unnatural evil akin to the stereotypical human belief in a Devil - however Dream House is a vastly powerful and mysterious entity so we should be wary of judging its actions on a purely human-centric view of "right" and "wrong". Regardless of its ethical standing the Dream House is a deadly predator and has no shame in using any of its many powers to use in capturing souls.
When confronted by those who oppose its work the Dream House can become very aggressive and tries to use its vast power to its advantage and intimidate its would-be-opponent, if intimidation doesn't work Dream House will lash out with great force on any that would dare to get in the way of a predator and its prey.