I think it's more that residential areas are 1hr+ commutes from offices/downtowns. You could build an office next to a residential area, and some do, but many o

I think it's more that residential areas are 1hr+ commutes from offices/downtowns. You could build an office next to a residential area, and some do, but many of the job applicants will be in a different residential area -- often even in a different city. Suburban sprawl, y'all. You could have smaller offices in different neighborhoods, but there's usually not enough people in any given suburban area to justify an office. Co-working spaces are one compromise but larger companies dislike them for security/secrecy reasons. I would also add that many people have reasons for not moving closer to work even if they could. Also people are no longer working for decades at the same job, and moving is a hassle if you're changing jobs every few years.