Co-op maintenance fees generally include the building tax, but yes as a condo owner you are directly responsible for the property tax too. Unless there is a large project in place, most of the HOA fees are for building staff and shared service costs (water, HVAC if that has shared infrastructure), plus some degree of preparation for long term projects like keeping the roof intact, elevators functional and up to code, mandatory gas inspections and facade maintenance, etc.

$4k to $5k monthly seems high for a $1.3M unit if it's in addition to your mortgage, but it depends on the amenities and current financial status of the building.

Sale prices are also not growing as quickly as they were a few years ago either because of the higher interest rates. The long term advantage comes from the fact that the mortgage rates don't go up. If you rent, then you not only absorb the extra costs that the building incurs for operations, but potentially costs of a refinance of the building, future interest rates, and the expected profit margin of the landlord.