Lyric discussion by squeakydonut 

Cover art for Starring lyrics by Freelance Whales

I believe this isn't literally about him being in someones nightmare, its more like his life is something some people have nightmares about, whether its a breakup or whatever. Hes explaining how he's experiencing something difficult.

My Interpretation

after reading your comment, it just hit me that this song could be about something like being responsible for screwing someone's life up, and having them tear themselves up hating you for it until the "house" is "flooded" and they both end up "drowning" in all that destruction. figuratively speaking, of course.

just a thought...

My Interpretation