pros/cons of different ways to store whether a record is one of two options?
If you are really sure that those types don't change (or at least not often) you can also use a variation of 3) using a column AddressType of type varchar with a check constraint that limits the values to 'work' and 'home'. 

This is less flexible than a lookup table, but still better than a boolean that has some implicit meaning when set to false. And you wouldn't need the join (although I doubt a join against a table with two rows will be noticable)