I even rented myself an office when I was working solo for almost a year before hiring someone, just so I could have a desk, a file cabinet, a printer, and a real office environment to get work done. I lived alone. I still got up in the morning and went to the office, it was good for my productivity and mental health.
I feel that it's important to set up boundaries, or tasks and work will contaminate your personal spaces. I also think that it's just 100x better for communication to have everyone in the same room working together. Nothing beats verbal interpersonal communication.
With that said, I recognize that my opinion on this is 1) entirely subjective and 2) maybe because I'm old.