It is a mess.
If you like your house and your neighborhood, you probably don’t want demolitions and construction, even if it’s not your house. It’s noisy, it brings uncertainty, and maybe when your neighborhood won’t be the same after buildings get replaced. Maybe the new buildings are too ugly or the residents undesirable or the infrastructure unable to keep up. Or maybe none of those are true but you personally are anxious from the thought of change so you don’t want to risk it.
In any case, the no-change crowd holds all the power except when those pursuing change have a lot of money. This further reinforces negative impressions of what it means to allow change in your neighborhood.
One solution to this would be to guarantee a unit in any multi family or apartment building to the current resident, and pay for their relocation while the new unit is being built.
Alternatively, buy units from people who are leaving or who have passed away.
We do need to knock down some houses to build more housing, but we can do it in a way that is minimally disruptive.
You are just increasing the cost of the building's rent with this stuff. You'll have a few birthright units and everything else will be luxury to cover costs. This is the same problem we currently have with affordable units, huge missing middle.