My wife and I had this conversation the other day. Commute time would be the biggest factor for me. For example, we live in east Round Rock, so commuting to downtown Austin 5 days a week probably turns a 40 hour week into a 50 hour week, factoring in commute time. 500 extra hours per year sitting in traffic is life changing. Not to mention increased blood pressure, gas, tolls, insurance, parking, more vehicle maintenance, more money on work clothes, having to plan better for lunches and hope I could continue eating healthy, etc.
So I think it would take double for me to make up for all those tangible costs. I'm not horribly far off from retirement so the comfort of working at home, listening to the music I want to listen to, not smelling a coworker's microwaved fish, setting my own schedule, showering when I want to shower, being at home for deliveries, the AC guy, the pest guy, whatever - all that has a big price tag.
Now if the commute was 10 min from home? Yeah, I'd take the money.