Government incentives probably won't change the life-styles of people such as yourself who can afford to live near the city core. The problem is for those of us who can't afford to do so, but need to work in the city centre (like most people these days do) our options are basically buy a car and waste hours in traffic everyday, or rent an "apartment" - although these days that tends to mean a small bedroom - in the city centre which you can hardly afford and gives you no satisfaction, nor room to do things like raise a family or have a functional relationship.
What I'd advocate for is governments to tax the hell out of companies who want to buy offices in city cores without a good reason. All a lot of these companies do is contribute to congestion and unaffordable property prices through increased urbanisation which forces people into the city or to deal with the congestion. A few years ago my girlfriend use to have to travel an hour every day to get to the city centre to work in a call centre. What's the point in that?
If instead governments allocated certain areas of cities which have low congestion and offered companies tax breaks for opening offices there you probably would see many moving out of the cities to the suburbs, reducing congestion and making properties more affordable.
I honestly think one of the main factors contributing to depress and mental-illness today, and why people don't have kids like they used to is because of the way we're living. Who the hell is going to raise a kid on £35,000 in 10m x 10m one-bed "flat" in a city like London? However, if on that money living in the suburbs of a city like Birmingham you'd be able to afford a reasonable two-bed home with a driveway and garden. The problem is uncontrolled urbanisation is driving businesses to city centres, and often to the major cities, then forcing anyone who wants to decent job to follow along whether they can afford to or not.
I bet most well paid developers living in the UK here live in London. And that's by no accident. It's not that they all just love London so much that they're happy to live in tiny apartments with no hope of raising a family or affording a mortgage. They do it because that's where all the decent tech jobs are. And why? Who is benefiting from this? A few very rich people and large businesses who can afford offices in city centres?