> I think it would help with making companies handle that externality.
This is backwards, companies do not choose where employees live. Employees do. That they choose to live with long and unpleasant commutes (typically in exchange for more space, cheaper housing etc) is in general terms on them not the company. I'll allow that the rowback of wfh from a previously fully remote job is on the company - but certainly outside of that I have little agreement.
While true, there's (often, not always) an inverse correlation between location of work and cost of living. Few people can afford to live close to the office.
What would work (at least in my country, and in my head / from my armchair) is sattelite offices. I live in a neat suburb with an industrial estate with some office buildings, if my job opened a sattelite office there I would be much more inclined to go to the office.
But then, they would need to make sure that only people that live nearby go to that office. Given that a lot of teams are multidisciplinary, that would be difficult. Plus, the job would need to offer long-term stability, and only few jobs in software can promise stability for more than a year. If they want people to move close to work, it has to be both affordable and guaranteed stable for at least 5-10 years.
I looked into it once, there was an office for a software company across the street and I applied there. But the two offers they made were both lower than what I was earning at the time, to the point where I wouldn't be able to live there. And second, after the pandemic they closed the office and became a remote-first company.
This is backwards, companies do not choose where employees live. Employees do. That they choose to live with long and unpleasant commutes (typically in exchange for more space, cheaper housing etc) is in general terms on them not the company. I'll allow that the rowback of wfh from a previously fully remote job is on the company - but certainly outside of that I have little agreement.