Did you know that Costco is building apartments on top of its stores to help tackle the affordable housing crisis? In Los Angeles, a groundbreaking project will stack hundreds of apartments above a working Costco warehouse, with many units reserved for low‑ and moderate‑income families.

Smarter Use of City Land

The idea is simple but powerful: use valuable urban land more efficiently by combining homes, jobs, and everyday services in one place. Instead of expanding outward into already scarce land, the project builds upward, creating a mixed‑use hub where residents can live directly above bulk groceries, pharmacies, and affordable food.

A First for Costco

This is one of the first projects of its kind for Costco, and it could become a blueprint for future urban developments. According to reporting from the Los Angeles Times and Bloomberg, the initiative reflects a growing trend in U.S. cities to rethink zoning and land use, blending retail with residential space to meet urgent housing needs.

Addressing the Housing Crisis

Los Angeles faces one of the most severe housing shortages in the country. The California Housing Partnership estimates that more than half a million low‑income households lack affordable housing options. By integrating apartments into existing commercial sites, projects like Costco’s can help alleviate pressure without requiring massive new land acquisitions.

Benefits for Residents and Communities

• Convenience: Residents will literally live upstairs from groceries, pharmacies, and essential services.

• Affordability: Units are reserved for families who need them most, helping to stabilize communities.

• Efficiency: The city gains much‑needed housing without expanding outward, reducing sprawl.

• Community impact: According to the Urban Land Institute, mixed‑use developments foster stronger neighborhoods by encouraging interaction and reducing commute times.

A Blueprint for the Future

If successful, Costco’s model could inspire other retailers to follow suit. Imagine supermarkets, department stores, or even gyms doubling as housing hubs. The Brookings Institution has argued that creative land use is essential for solving America’s housing crisis, and Costco’s experiment may prove that solutions can be both practical and innovative.

A Catchy Reminder

Cheap hot dogs downstairs, affordable housing upstairs. Sometimes the smartest solutions are hiding in plain sight.

References (plain text):

• Los Angeles Times – Coverage of Costco’s housing project in Los Angeles (2025)

• Bloomberg – Reporting on retail‑residential mixed‑use developments (2025)

• California Housing Partnership – Data on affordable housing shortages in California (2024)

• Urban Land Institute – Research on benefits of mixed‑use developments (2023)