I live 3 miles from work: takes me just over 15 minutes to cycle, or about 7 to drive. I can even walk it in an hour. I once lived two buses away from my job: 1 hour each way on a good day, then we moved house so that we were about 2 miles away. The extra time I gained by doing that was such a pleasant surprise that I vowed never to live more than 30 minutes away from work again.
For me, no matter how nice the house or the area, I wouldn't commute for more than an hour in total a day. What's the point of having a lovely house if you're too knackered in the evenings to enjoy it?