This paper examines the impact of public policy on different dimensions of spatial inequality. We not only study residential segregation but also housing market access and inequality in terms of neighborhood status. We chart the impact of urban redevelopment policies in two Dutch cities—Amsterdam and Rotterdam—through a unique longitudinal and full-population dataset that enables us to distinguish the contributions of demolition, new construction, and tenure conversion to various dimensions of spatial inequality. We find that policy measures that reduce segregation may reduce access to housing (as happened in Amsterdam) while measures that promote upgrading may exacerbate inequalities between neighborhoods (as happened in Rotterdam). Distinguishing between different kinds of policy measures and dimensions of spatial inequality, we argue, allows for a more nuanced and comprehensive understanding of urban redevelopment and better insight into the trade-offs involved in policy decisions.