Can being born with underdeveloped hips lead to hip problems?

Hip dysplasia. Yes. Aside from being underdeveloped, a baby maybe born with dislocation of the hips as well. But the trick to prevent further damage is to see a pediatric orthopedic surgeon as early as possible.
Sockets matter. Hip development is a mirrored process. The hips need to be properly located with the ball of the hips opposite the location of the socket. This structure is not fully formed in underdeveloped hips, but can if proper position is maintained. If the ball slips out of position, the cup of the socket will be too shallow to support the weight of the upright kid & a false socket may try to form.

Related Questions

Can being born with a dislocated hip lead to problems later on?

Usually not. With a proper treatment rendered within 2 weeks from birth, late sequelae are pretty uncommon. Read more...