Fact Check: Examining Claims of Costco Building Apartments Above Stores

In a pioneering move that could reshape urban housing solutions, Costco Wholesale is partnering with real estate developer Thrive Living to build affordable housing units above one of its warehouse stores in Los Angeles. The project, however, remains limited to this single location despite widespread social media claims suggesting a nationwide initiative.

The development, located in the Baldwin Village neighborhood of southern Los Angeles, will feature 800 rental apartment units constructed on five floors above a street-level Costco store. Of these units, 184 will be designated for low-income households, with the remainder targeting middle-income families who often face challenges in the housing market—those earning too much to qualify for subsidized housing but struggling to afford market-rate rentals in the area.

Construction on the innovative mixed-use project broke ground in September 2024, with completion anticipated in approximately 2027, according to Thrive Living’s timeline of 2½ years. The development replaces an abandoned office complex, transforming an underutilized property in a region grappling with housing affordability issues.

Social media platforms including Instagram, Facebook, Reddit, and X have been abuzz with claims that Costco is implementing this housing model across its stores nationwide. These posts, which began circulating in December 2025, featured various images purportedly showing different Costco housing developments under construction. However, many of these images do not depict the actual Los Angeles project, which as of late 2025 exists primarily as architectural renderings.

The Los Angeles development represents a collaboration between several stakeholders. Thrive Living, a private real estate firm specializing in developing underutilized properties in housing-stressed markets, is working with AO Architects on the design. The City of Los Angeles has also been actively involved, with Mayor Bass participating in the groundbreaking ceremony and highlighting the project’s potential to create jobs while addressing housing needs.

“This development breaks the status quo by combining retail convenience with affordable housing in an area that desperately needs both,” stated a press release from the mayor’s office following the September 2024 groundbreaking event.

While the concept of integrating retail with housing isn’t entirely new—some cities have previously incorporated Costco stores into residential neighborhoods—this specific implementation of stacking housing directly above a Costco warehouse store appears to be a first-of-its-kind venture for the retail giant.

The project comes amid a nationwide affordable housing crisis, with many major metropolitan areas experiencing severe shortages of reasonably priced housing. Los Angeles has been particularly affected, with housing costs significantly outpacing wage growth over the past decade.

Urban planners and housing advocates have increasingly promoted mixed-use developments as a potential solution to housing shortages, making more efficient use of valuable urban land while creating walkable communities with convenient access to retail and services.

For Costco, the project could represent a test case for future developments, though the company has made no public announcement about expanding this model to other locations. When contacted for comment about potential nationwide plans, Costco had not provided a response at the time of publication.

Should the Los Angeles project prove successful, it could potentially inspire similar developments from Costco or other big-box retailers looking to maximize land use while addressing community needs. However, for now, claims of a broader Costco housing initiative remain unsupported by evidence.

The Baldwin Village development stands as an interesting experiment in reimagining how retail and residential spaces can coexist—one that urban planners and housing policy experts will likely watch closely as it progresses toward completion.