Yes: In historically disinvested communities and communities of color, new market-rate housing can help trigger gentrification and ultimately displacement of long time lower-income populations. Inclusionary projects, particularly those with a sizable share of permanently affordable housing units, can help ensure that new development helps to stabilize rather than displace the existing community. Researchers at UC Berkeley found that development of new affordable housing was significantly associated with lower levels of displacement in gentrifying neighborhoods.*

Does social interaction with higher-income neighbors help lower-income residents?
Should mandatory inclusionary housing programs offer incentives to developers?