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Not necessarily, I live in downtown Toronto, ON, and I rent an apartment for my needs. These needs did not include working from home! I could move and find a better place to allow me to work from home properly, but unless my employer pays for it, or give me a raise to compensate for it, I'll find a better paying job.

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I was working out of a studio apartment until this year and I honestly didn't feel like my WFH set up took up any real extra space:

In the beginning I would use the breakfast bar and just put the laptop up after work. Later on I bought an Ikea arm chair and an end table that just stayed in a corner I didn't use. This is all in addition to the partitioned off area for my side projects that had it's own desk and chair.

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