I used to live in a small apartment and walk to work. Then when my wife and I both had to work from home, we ended up renting a big house because we still needed offices to work. Maybe there are some jobs & personal situations that allow one to wfh without additional space and costs - really though it's just shifting space around, often very inefficiently.
I mean, just bigger apartment is also solution that doesn't have that much of an environmental impact (the space "wasted" is saved by less office buildings).
Additional space in a city is significantly more expensive than the same space in the suburbs because each square foot is in much higher demand.
Some people like the suburban lifestyle, but the reason even people who prefer the amenities of cities move out is that it's the only affordable way to get a lot of space.
The solution is vastly more urban construction to meet demand, but development and regulatory changes have been slow.
I used to live in a small apartment and walk to work. Then when my wife and I both had to work from home, we ended up renting a big house because we still needed offices to work. Maybe there are some jobs & personal situations that allow one to wfh without additional space and costs - really though it's just shifting space around, often very inefficiently.