Drywood termites live in dry, undecayed wood like limbs of trees, utility poles, posts, and lumber. Dry wood termites termites do not require a lot of moisture which makes them live in dry places. They do not require constant contact with the soil for their survival like it's Sub-terranean Cousin. Subterranean termites are social insects which live in colonies in the ground. They build vertical tunnels that look like mud tubes (known as shelter tubes) above ground level in the search of food. Basically any sort of wood can tempt Termites.Wood is made up of Cellulosic material which is the favorite food of Sub-terranean termites.