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There are a lot of great ones in here, but there's another perspective I think should be added. For a long time, employees have been commoditized. We're resources. Interchangeable. And that gives companies tremendous power.
WFH puts us on more even footing. There are entire cities supported by a single industry or even company. Now we aren't limited geographically in who we can work for. If you're toxic to work for, we can leave. It saps the power of the leadership to say "my way or the highway."
I don't think this is the secret underlying reason. I agree it's real estate values that are mainly driving it, but I think this is absolutely part of it. Toxic leaders (and every company has them) are finding people are less willing to tolerate their bullshit because they aren't over a barrel to the same degree. Still need universal healthcare to really break their back.
Yeah for quite some time I have been saying labor is priced artificially low. All of the barriers to finding a new job while working. All the risks of even short-term unemployment. Workers are already fucked by the power imbalance but without any liquidity in the labor market it's so much worse. WFH adds liquidity, they hate it.