Director J.L. Carrozza credits a story he once heard of a girl's guardian angel saving her from a rapist who was stalking her as the influence behind the story of this film. Other heavy influences included Straw Dogs (1971) and a Chinese horror film called Haunted Tales (1980).
As with his previous film Little Red Riding Hood (2009), this was made with money entirely from the pocket of director J.L. Carrozza, shot on a Canon GL2 borrowed from Neil Cicierega which was also used to shoot Cicierega's The Mysterious Ticking Noise (2007), one of the most popular viral internet videos of all time. The film was shot entirely in and around Plymouth County, Massachusetts and the actors, some of whom also appeared in Little Red Riding Hood (2009) were all local non-professionals who appeared in the film for free and many of them, especially David Luce, provided their own props and costumes.
One of the biggest influences on the film was director Mario Bava. J.L. Carrozza watched Black Sabbath (1963) and several of his other films numerous times during production. The titular dream house's address is "334 Bava Ave".
Shot nearly concurrently with "No Place Like Home", a 2007 The Wizard of Oz (1939) parody directed by Ryan Murphy. During that summer, some days and weeks would be devoted to "No Place Like Home", others to "Dream House". Kevin J. James, who plays Gary here, was also shooting a comedy film entitled "Hip Hop Cherry Pop".