12/28/2025
Costco is testing a new approach to urban housing by combining large-scale retail with residential development. In Los Angeles, the company is partnering with Thrive Living to build apartments directly above a new warehouse location.
The Baldwin Village project will include around 800 housing units, with 184 reserved for low-income residents, helping ease pressure in one of the most expensive housing markets in the U.S. Construction is scheduled to be completed by 2027.
A key feature of the model is financing. Revenue generated by the Costco store below is used to help subsidize housing costs, reducing dependence on public funds and government housing programs.
The development also uses modular construction and incorporates modern amenities, showing how mixed-use projects can be both cost-efficient and livable at scale.
Urban planners see this as a potential blueprint for other cities, where underused commercial land could be transformed into housing without expanding urban sprawl.
