When Your Neighbor is a Big-Box Store

Taking advantage of state and local density bonuses and streamlining measures, beloved big-box retailer Costco is getting into the housing business

1 minute read

July 12, 2024, 7:00 AM PDT

By Josh Stephens @jrstephens310


Costco store with cars parked in front in Temecula, California.

Baharlou / Adobe Stock

“Everything about housing development is antithetical to Costco's business model. Costco is in the business of building the same big-box store – with the same gigantic parking lot – pretty much anywhere. Urban infill housing is costly, complicated, and customized. But some people will do anything for an entitlement.”

The end result may be the type of mixed-use development that, while achingly pragmatic, would give even the most sanguine New Urbanist a heart attack. From the renderings, it will not be a human-scale, finely detailed series of storefronts and front doors. It will, rather, be an enormous box hemmed in by slightly smaller boxes And, in a rarity for Costco, much of the parking will be underground.

“Big boxes aren't just stores. They are, by definition, real estate plays. Between the demand for housing, the urbanist antipathy for wasted space, new state laws friendly to mixed-use and adaptive reuse, and other local regulations akin to Los Angeles’s TOC (e.g. the Bay Area’s own TOC program), more such developments seem inevitable -- it would be financially irresponsible of the Costcos, Targets, and Walmarts of the world not to pursue them. The South L.A. Costco is just the prototype.”

Wednesday, July 3, 2024 in California Planning & Development Report

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Cover CM Credits, Earn Certificates, Push Your Career Forward

Logo for Planetizen Federal Action Tracker with black and white image of U.S. Capitol with water ripple overlay.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

June 11, 2025 - Diana Ionescu

Metrorail train pulling into newly opened subterranean station in Washington, D.C. with crowd on platform taking photos.

Congressman Proposes Bill to Rename DC Metro “Trump Train”

The Make Autorail Great Again Act would withhold federal funding to the system until the Washington Metropolitan Area Transit Authority (WMATA), rebrands as the Washington Metropolitan Authority for Greater Access (WMAGA).

June 2, 2025 - The Hill

Large crowd on street in San Francisco, California during Oktoberfest festival.

The Simple Legislative Tool Transforming Vacant Downtowns

In California, Michigan and Georgia, an easy win is bringing dollars — and delight — back to city centers.

June 2, 2025 - Robbie Silver

Man in teal shirt opening door to white microtransit shuttle with cactus graphics and making inviting gesture toward the camera.

Albuquerque’s Microtransit: A Planner’s Answer to Food Access Gaps

New microtransit vans in Albuquerque aim to close food access gaps by linking low-income areas to grocery stores, cutting travel times by 30 percent and offering planners a scalable model for equity-focused transit.

June 13 - U.S. Department Of Transportation

Group of people at table set ouf with picnic food on street during a neighborhood block party.

This City Will Pay You to Meet Your Neighbors

A North Kansas City grant program offers up to $400 for residents to throw neighborhood block parties.

June 13 - The Kansas City Star

Crowd gathered with protest signs on April 5, 2025 on steps of Minnesota state capitol protesting Trump cuts to social security and other federal programs.

Commentary: Our Silence Will Not Protect Us

Keeping our heads down and our language inoffensive is not the right response to the times we’re in. Solidarity and courage is.

June 13 - Shelterforce Magazine