When we hire infrastructure staff we consider where people live, as you're concerned about people getting in to the office on time and importantly at odd times (if the systems go down at 1am and you need someone in to fix it) or you need people in to do a release - having to set off at 5am to start work at 7am can be problematic. Also when you're talking shift work. Also staying power, sure someone might stick about for a year with a 3 hour commute if they're desperate for work but the second something comes up they're out the door.
So it's very much a consideration.