Starting in 2000s, New York City began to rely upon inclusionary zoning to expand “affordable” housing, but do these market-led tools relieve or intensify gentrification? Focusing on Long Island City, one of the fastest growing neighborhoods in the past two decades, this case study tests the hypothesis that policies designed around private-sector incentives privilege real-estate interests while offering only marginal relief to lower-income residents, thereby widening socio-economic inequities. Using U.S. Census data, FRED rent and price series, zoning documents, and 421-a/485-x subsidy records, the analysis traces shifts in education attainment, rents, incomes and housing production against each policy milestone. Results show 26,600 new units but just 3,000 affordable—mostly at moderate-income tiers—alongside an 84 % rent surge and sharp rise in median household income. The findings validate that inclusionary zoning incentives accelerated upscale development and displacement, underscoring the need for stronger affordability thresholds and anti-displacement safeguards.