Imagine grabbing your bulk toilet paper and a new flat-screen TV, then heading home to your apartment, all within the same sprawling complex.
It sounds like something out of a futuristic urban planner’s dream, but it’s precisely what US retail giant Costco is reportedly planning in Los Angeles.
This groundbreaking move has sparked a crucial question for us here in Australia: could a similar retail-residential hybrid model help ease our nation’s crippling housing shortage?
The discount chain, renowned for its warehouse-style stores and cheaper fuel, is reportedly looking to break into the Los Angeles housing market with plans for a new store in South LA, featuring an astonishing 800 connected apartments.
A significant portion, 184 units, are earmarked as affordable housing for low-income individuals.
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Rendering of planned Costco mixed-use site at 5035 Coliseum St., Los Angeles. Source: Thrive Living
The ambitious project, developed alongside Thrive Living and architects AO, would create a massive retail-housing hub in Baldwin Village, complete with amenities like a gym, rooftop pool, and gardens.
While still awaiting approval, this concept offers a potential solution to LA’s median home price of $1 million, which has exacerbated homelessness in the city.
Housing activist Joe Cohen shared what the current plans could look like for residents, according to SFGATE.
An overhead site plan view of proposed apartments above a Costco in South Los Angeles. Source: Thrive Living
“But it is a bunch of small units along these long hallways, with a massive recreation centre as an amenity space,” he said.
The current proposed plans show three large rings of connected homes, each ring with a courtyard or garden area in the middle.
Costco’s warehouse would then be attached to the complex.
The store will also be available for all Costco members to shop at and will be near public transport for people to access.
Australia’s housing headache: A dire situation
Here in Australia, the housing crisis is equally, if not more, acute.
It’s a national emergency, with two-thirds of Australians grappling with housing stress, meaning they spend over 30 per cent of their income on housing costs.
Rents have skyrocketed by a staggering 57 per cent nationally over the past decade, according to a new housing report by Everybody’s Home.
This disparity has pushed home ownership further out of reach, with median-income households able to afford just 14 per cent of homes sold in the 2023-24 financial year.
Planned layouts for apartment units in a development that would also house a Costco in South Los Angeles. Source: Thrive Living
The grim reality is that housing affordability is now the fastest-growing cause of homelessness across the country.
Our major capital cities bear the brunt of this crisis.
As of August 2025, the national median house price sits at approximately $912,563, with combined capital cities averaging $1,044,867.
Sydney leads the charge with a median house price of $1,525,956, followed by Melbourne at $952,399, and Brisbane at $1,019,865.
Could a retail-residential hybrid work in Australia?
The concept of mixed-use developments, blending residential, commercial, and recreational spaces, is already a cornerstone of urban planning in Australia.
Major Australian developers like Mirvac and Stockland are actively involved in creating such integrated communities, including apartments alongside retail and commercial spaces.
This suggests that the foundational expertise and market acceptance for such projects already exist.
The Costco model, while novel, would also align with Australia’s growing need for integrated, high-density living solutions and help meet The National Housing Accord, which has an ambitious target of 1.2 million new homes to be built by 2028.
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