The effect of market-rate housing on rents and housing prices in the surrounding neighborhood is the subject of intense academic and political debate, with minimal consensus. Studies have shown evidence of two wildly disparate outcomes due to market-rate development. One result is described by the terms gentrification and displacement; as rents and prices rise in the neighborhoods surrounding market-rate development, speculators sweep up land for more action, further driving up rents, and property owners and landlords evict tenants to make way for even more growth. This can lead to the displacement of long-term residents and small businesses and a change in the demographics and culture of the neighborhood.

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Retail uses are vital to the success of multifamily developments. They provide amenities, services, and jobs that residents need and want. In addition, retail uses can create a sense of place and generate foot traffic, making neighborhoods more vibrant and safe. For these reasons, it is essential to include retail in your development plans.

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