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The average commute commutes 30 minutes each way, traveling an average of 15 miles, for a total time cost of 250 hours for a job wherein you are paid for 2080 hours of work.
The cost per vehicle mile is now about $0.72 including all costs. The average commuter traveling 15 miles one way will burn $5,400 commuting. Man then there is the cost of childcare. For instance maybe your kid gets home at 4P and you get off at 5P. If you commute you'll be back and 5:30 and you have to find a solution. One solution is one partner arrange to be off but that has its own cost. If you want to itemize the cost of having someone pick up and watch your kid its about $15-20 an hour 180 days * 2 hours or so. So up to $7000. This is not even counting the times that kids have the day off from school but mom and dad don't or times a kid is sick.
That is to say you commit 12% more unpaid work + commuting costs for the privilege of being there in person. If the median worker earns about 60,000 they are incurring as much as $20,000 in costs in both time, transportation, and childcare.
Compare that to the cost of running the company laptop 40 hours a week 50 weeks a year is about $10. A home office can be had for $1000 ever. As far as the space I have one which I've worked out of in my tiny studio come on man. Are you really shocked that you have to pay someone more to come in?
Hell we haven't even talked about the cost of living in the expensive places companies like to situate themselves vs the surrounding oft cheaper areas!
https://www.care.com/c/after-school-transportation-for-kids-cost/ https://data.bts.gov/stories/s/Transportation-Economic-Trends-Transportation-Spen/bzt6-t8cd/ https://www.census.gov/newsroom/press-releases/2021/one-way-travel-time-to-work-rises.html
There is also expense/time of hygiene, laundry, drycleaning, restaurant lunch/coffees/snacks