In this study, we model the telework-commute distance decision process as a package choice, and use a latent segmentation approach to recognize that some individuals may choose their telework arrangement first and then choose their commute distance (their residential location), while others may adopt a reverse causal behavioral process. The latent segment modeling methodology combines a multiple discrete–continuous probit model for telework adoption/intensity as the proportion of monthly workdays worked from home, from the office, and from a variable third workplace, with a log-linear regression model for commute distance (the home-to-office distance). The data for our analysis is drawn from a 2022 survey of Texas residents. Results suggest that about 20% of the population are likely “movers”, whose telework choices led to a residential move that changed commute distance, while the other 80% are “stayers”, whose commute distance at their predetermined (to telework) residential location changed telework habits. We further quantify the impact of teleworking on commute distances by computing the expected commute distance for several telework distribution preferences. A shift from 100% in-person work to 100% home-based remote work increases average commute distance by 64.8%, while working from a third workplace for any portion of a month reduces commute lengths relative to only home-based telework. In terms of monthly commute vehicle miles traveled (VMT), working from home for less than 18.6% of the month (about once a week) per worker actually increases overall monthly commute VMT. Monthly commute VMT reductions become tangible only at about 30–40% telework for each worker (about two days of telework per week for full-time workers with 22 workdays per month). In general, between 0 and 40% home-based telework per worker (with the remaining percentage at the office), there is a 10% commute VMT reduction for each 10% increase in home-based telework. In the range of 40% to 80% home-based telework, there is about a 13% commute VMT reduction for every 10% increase in home-based telework. And in the range of 80%-100% home-based telework reduction, there is about a 15% commute VMT reduction for every 10% increase in home-based telework.