Paris is grappling with an ongoing population decline, with roughly 10,000 residents leaving the city centre every year for the past decade.

The French capital now has 2.1 million inhabitants, marking a drop of 140,000 people since 2013. Meanwhile, the surrounding Ile-de-France region, which includes Paris' suburbs, boasts a population of over 12 million.

City officials are increasingly concerned about this trend, which is being driven by factors such as rising housing costs, a shift in living preferences, and the impact of short-term rental platforms like Airbnb. In response, Paris Mayor Anne Hidalgo, supported by her Socialist allies, has proposed a comprehensive urban development plan (PLU) aimed at revitalizing the city’s central districts, improving the quality of life, and addressing the growing housing crisis.

The main focus of the proposed plan is to increase the availability of affordable housing, particularly for middle-income families, and help residents adapt to the challenges posed by climate change. However, the plan has sparked controversy and fierce debate among political factions.

Opposition figures, led by Rachida Dati, France's Minister of Culture, have criticized the city’s rapid urbanization, claiming that excessive construction and high-density housing have led to an "unbearable" environment. Pierre-Yves Bournazel, a member of the conservative opposition, claimed that “You can't breathe in Paris anymore,” and warned that proposals to elevate existing buildings could worsen the issue by creating "street canyons."

In contrast, allies of Mayor Hidalgo, such as Communist Senator Ian Brossat, argue that the city has never invested as much in affordable housing as it is currently doing. Brossat emphasized that without more social housing options, middle- and lower-income Parisians would be forced to leave the city altogether.

Experts point to multiple long-term factors contributing to the population loss in central Paris. Jean-Christophe Francois, a geography professor at Paris Cité University, explained that an increase in the quality of housing has led to the replacement of smaller, overpopulated apartments with larger and more expensive units, leaving fewer affordable options for families.

Moreover, the COVID-19 pandemic and a rising divorce rate have compounded the issue, with many individuals and families opting to move out of the capital in search of more space.

One of the most significant recent factors contributing to Paris’ housing woes is the boom in short-term rentals, particularly those listed on Airbnb. According to the Apur urbanism agency, the number of primary residences in central Paris has steadily declined, even as new housing is built. In a stark reflection of the capital’s attractiveness, many second homes, often owned by wealthy foreigners, have been converted into short-term rentals, further inflating rents and reducing the stock of available long-term rental properties.

Paris City Hall has proposed banning new Airbnb rentals in popular tourist areas, including Montmartre and the Marais, as part of the new urban plan. The administration is also advocating for higher taxes on second homes in an effort to curb the impact of these rental practices.