Moritz Gottschalk was an important manufacturer of dolls' houses, rooms, kitchens, shops, theatres, and dolls' house furniture. Originally he had been inspired to make pressed cardboard soldiers helmets for children. These proved very popular so he used similar processes and manufacturing techniques to create buildings and furniture. Established in 1873 in East Germany, the company grew rapidly and soon Gottschalk had showrooms in Paris, London, Amsterdam, and in the USA. During World War II toy production was stopped so that the cardboard could be used to manufacture boxes for the armed forces. Under the Soviet occupation of East Germany, the company was nationalised and many of its records were destroyed.

Dolly's Home was made in 1927, at which point the company was being run by Lina Gottschalk and her second husband Kurt Wagner. It has a simple construction and was clearly designed for children. The house is interesting because it is fixed inside a box, allowing it to be packed away easily when finished with. The inside of the box is painted with a landscape creating a garden scene around the house. This model was the simplest of three hideaway buildings produced in 1927. The largest version was a hillside fort or castle. Because many components were made from cardboard they have often not survived in very good condition.