I've never been one for conventional economics to be honest, but do believe that markets adjust to new equilibria given changed conditions.
And assuming governments stop tinkering with them.
What I'm seeing now is companies and employees stuck in the same practice of 'everyone in the office' for the most part and resisting change primarily as a result of trust.
Why should I move my life for a company if they don't offer remote work but wish to employ me?
That they should pay for the time I spend commuting that would otherwise be my free time is logical otherwise it's just unpaid, unproductive (as I'm not actually working) overtime.
I see either companies offer remote work, pay for (let's say excessive) commuting, or just employ whatever people are available in their local area.
Fortunately that's beginning to change as we're specialised and may have actually woken up to the fact that we're both in demand and valuable commodities as it were.