Venues and their increasing costs have nothing to do with production costs. Production costs refer to what it costs to actually produce a track and release it out there to the public.
Not even talking about insane amounts of good educational material available online for free these days, the capable equipment required to produce a studio-quality track fell down in price significantly, and most older equipment is still fully functional and compatible with newer offerings (thanks, MIDI and XLR). And newer equipment is still significantly cheaper than almost anything comparable from 20 years ago (if it was even available back then).
Back then, you wouldn't be able to produce anything that could compete in quality with studios from your bedroom, and not on a reasonable budget. And even if you somehow were so rich you were able to finance a pro studio in your house, and you produced a decent track, now the question is how would you even distribute it to the public and get heard.
These days? Thanks to affordability of what it takes to produce a track and the ease of getting your material released to the public, you can go from a nobody to someone with a hit track overnight. All for the price of a laptop, some decent speakers/headphones, and a midi-controller. And even that list is optional, as there are people who produce great stuff with less than this or even something entirely different.