Of course ideally the local situation would be everybody works within a couple blocks and so the elevators and sidewalks can handle it. Most zoning boards hate this idea though.
I do agree with you though that if new housing is only built in a small number of areas, those areas could very well see more traffic. A goal of SB-827 was to increase housing across the entire state, particularly near areas well served by mass transit, in the hope it would result in less people commuting by car.
Long term we will (as always) re-create the entire city. Long term we will notice that the street is too busy and do something about it. Long term we might even be do something about it people not working close to their home. Long term will will figure out what the true consequences of our decisions are and make further decisions to mitigate them which in turn will result in a new set of unintended decisions.