This episode is based on Goosebumps book #01.
Filmed on Toronto's Unwin Avenue, an industrial Canadian area. The "Dark Falls Chemical Factory" is actually the decommissioned Hearn Generating Station, which during the 20th century supplied power to most of Ontario. Other factories seen in the background include a dismantled Canadian sawmill/wood chipping plant.
While the main TV show theme was released, the soundtrack that plays throughout Welcome to Dead House (mostly piano music and creepy noises) was never released at all. The company has yet to inform whether or not that soundtrack still exists or if it will ever be released.