This whole situation smells a lot like the policies of previous city governments that were put in place to gentrify the hell out of the city. If you have read How to Kill a City you definitely should because it's small policies here and there that will turn New Orleans into a San Fransisco.
I strongly encourage everyone to read <em>How to Kill a City</em>
The government has a lot of power over gentrification. The government has the ability to not aide gentrification and step in if it is happening. The government needs to provide more pathways to home ownership for people affected negatively by gentrification. They choose not to.