For starters, let the interviewer know that you are very familiar with the benefits of working from home. On the flip side of the question, it’s great to show that you are aware of the drawbacks as well. Just make sure to spin that answer with how you will compensate. If you talk about missing the social interaction with coworkers, follow it up by describing how the time you save not having to commute means you can meet up with friends for dinner once a week.
Employers are looking for thoughtful answers from someone who acknowledges the positive aspects of remote work, along with the challenges. They don’t want to hire someone who will become unhappy when working from home isn’t what they expected.