My question is: how did people not realize this before the pandemic?
The workers of Silicon Valley (and other urban centres) literally created and sustained this problem all by themselves: "You have to get to Silicon Valley!"
I'm in Uruguay, South America, so the pandemic has been an incredible boon to me. I even got a remote team management position !
I went mobile over a decade ago. Had some work travel to do, and it made so much sense I basically reorganized, ditched a desk phone (literally put it into a drawer, left VM announcements that I do not do VM, and have not had one since), setup a nice backpack with the goodies and never went back.
Through that time, I setup a home lab and just did more and more there, until about the only thing that matters is where stuff to work on actually is and whether I can move it.