No, seriously, why do they? It's not like the construction workers don't get paid their wages if they aren't given such projects, and, unless you are buying the resources from overseas, the only cost for the construction materials for the state is wages/salaries of the workers who are involved in the relevant processes.
Am I being swindled?
All of the land that you see/can build on is your country. If there are no other cities, then there are no other cities. If you haven't build a construction industry, then there isn't one.