Economically it just makes sense. Companies spend ridiculous amounts of money recruiting and relocating talent from all over the world. Facebook even pays their employees $10,000 to move closer to their Menlo Park Campus. When a skilled populace becomes saturated into a city, it drives up the prices. These expenses will fall on the employees short term, and eventually the employees will demand higher salaries to make up for the higher cost of living. It is a strategic business move to allow employees to work remotely. Business increase their chances of attracting talent and studies show that remote employees are happier and more productive. Everyone wins.