A city also has property taxes which make up a large portion of my city's budget. I pay ungodly sums in property taxes for a not-that-expensive condo. The city gets away with this because the location is desirable and we have great public-transit.
Because of the property tax revenue, the city does give some companies a tax-break. But also because of the property tax, citizens keep a close eye on things, so most tax-breaks around here end up looking like forced-improvements or other public-goods.
Each city is different and will find the best way to fund itself. Saying they can't pay less for something they want forces the funding problem elsewhere.
The reason your condo was relatively cheap is because your city has high property taxes.
Your city may decide it wants to drive out rent-seekers by hugely taxing rental income or raising property taxes on rentals. This would effectively be a business tax. And the town next-door could decide it wants condo real-estate development to attract young urbanites, so it might notice your town's changes and offer tax-free rental income for N years. This allows each city to benefit their tax-base/residents the best.
The fact that cities need jobs and an inflow of money in order to function means that they're forced.
It's like saying that nobody forces you to take a job coz the park bench is always an option.