Home. Not having a clear a boundary is a minor concern, but the benefits of working at home outweigh it. I get more sleep and eliminate wasted time stressed in traffic. I have an office but sometimes I work in the living room. Either way the office is far more distracting. At home it's easier to work in manner that suits me ergonomically. (If you've never tried sitting on a comfortable chair or sofa with a keyboard in your lap, try it.)
My employer already sees the change and seems good with it. I might have clients down the road that want more in-person interaction, but I think we'll be able to minimize it.
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