Think about a Manhattan with 40% more housing, what would that do to affordability?
[0] https://www.osc.state.ny.us/files/reports/osdc/pdf/report-11...
True, of course. But geographically distributing the need for space reduces the very concentration of demand in the office park areas.
The larger home (with an office) may be entirely unaffordable in the city center where HQ was, but with remote you can move elsewhere where it can be cheaper than an apartment in that city.
Or you could rent a small office away from the crowds where it's cheaper. This is what I've been doing since pandemic start. Sure, I wish the employers would pay for it but it's still so much better that it's worth it. On fuel alone I save enough every month to pay the rent a couple times over. And my commute is ~5 minutes on a bike instead of 60-90 minutes sitting in traffic.