diff --git a/evennia/objects/manager.py b/evennia/objects/manager.py
index 851a3da1d9..c93c2ddac8 100644
--- a/evennia/objects/manager.py
+++ b/evennia/objects/manager.py
@@ -676,19 +676,25 @@ class ObjectDBManager(TypedObjectManager):
 
         location = dbid_to_obj(location, self.model)
         destination = dbid_to_obj(destination, self.model)
-        if home:
-            home = dbid_to_obj(home, self.model)
 
-        if not nohome and not home:
-            try:
-                home = dbid_to_obj(settings.DEFAULT_HOME, self.model)
-            except self.model.DoesNotExist:
+        if home:
+            home_obj_or_dbref = home
+        elif nohome:
+            home_obj_or_dbref = None
+        else:
+            home_obj_or_dbref = settings.DEFAULT_HOME
+
+        try:
+            home = dbid_to_obj(home_obj_or_dbref, self.model)
+        except self.model.DoesNotExist:
+            if settings._TEST_ENVIRONMENT:
+                # this happens for databases where the #1 location is flushed during tests
+                home = None
+            else:
                 raise self.model.DoesNotExist(
-                    "settings.DEFAULT_HOME (= '%s') does not exist, or the setting is malformed."
-                    % settings.DEFAULT_HOME
+                    f"settings.DEFAULT_HOME (= '{settings.DEFAULT_HOME}') does not exist, "
+                    "or the setting is malformed."
                 )
-        elif nohome and not home:
-            home = None
 
         # create new instance
         new_object = typeclass(
diff --git a/evennia/settings_default.py b/evennia/settings_default.py
index 8b5bb1910b..163f67ec2d 100644
--- a/evennia/settings_default.py
+++ b/evennia/settings_default.py
@@ -1149,6 +1149,10 @@ SESSION_SYNC_ATTRS = (
 AMP_SERVER_PROTOCOL_CLASS = "evennia.server.portal.amp_server.AMPServerProtocol"
 AMP_CLIENT_PROTOCOL_CLASS = "evennia.server.amp_client.AMPServerClientProtocol"
 
+# don't change this manually, it can be checked from code to know if
+# being run from a unit test (set by the evennia.utils.test_resources.BaseEvenniaTest
+# and BaseEvenniaTestCase unit testing parents)
+_TEST_ENVIRONMENT = False
 
 ######################################################################
 # Django extensions
diff --git a/evennia/utils/test_resources.py b/evennia/utils/test_resources.py
index edf66e6668..bbf879baf2 100644
--- a/evennia/utils/test_resources.py
+++ b/evennia/utils/test_resources.py
@@ -58,6 +58,8 @@ DEFAULT_SETTING_RESETS = dict(
     FUNCPARSER_PROTOTYPE_PARSING_MODULES=["evennia.prototypes.protfuncs",
                                           "evennia.game_template.server.conf.prototypefuncs"],
     BASE_GUEST_TYPECLASS="evennia.accounts.accounts.DefaultGuest",
+    # a special flag; test with settings._TEST_ENVIRONMENT to see if code runs in a test
+    _TEST_ENVIRONMENT=True,
 )
 
 DEFAULT_SETTINGS = {
@@ -153,7 +155,8 @@ class EvenniaTestMixin:
             self.account2.delete()
 
     # Set up fake prototype module for allowing tests to use named prototypes.
-    @override_settings(PROTOTYPE_MODULES=["evennia.utils.tests.data.prototypes_example"], DEFAULT_HOME="#1")
+    @override_settings(PROTOTYPE_MODULES=["evennia.utils.tests.data.prototypes_example"],
+                       DEFAULT_HOME="#1")
     def create_rooms(self):
         self.room1 = create.create_object(self.room_typeclass, key="Room", nohome=True)
         self.room1.db.desc = "room_desc"