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

Aerial view of town of Wailuku in Maui, Hawaii with mountains in background against cloudy sunset sky.

Maui's Vacation Rental Debate Turns Ugly

Verbal attacks, misinformation campaigns and fistfights plague a high-stakes debate to convert thousands of vacation rentals into long-term housing.

July 1, 2025 - Honolulu Civil Beat

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.

July 2, 2025 - Diana Ionescu

Map of Haussmann's redesign of Paris in the 1850s through 1870s under Napoleon III.

In Urban Planning, AI Prompting Could be the New Design Thinking

Creativity has long been key to great urban design. What if we see AI as our new creative partner?

June 30, 2025 - Tom Sanchez

Boston Red Line train with skyline in background.

Massachusetts Budget Helps Close MBTA Budget Gap

The budget signed by Gov. Maura Healey includes $470 million in MBTA funding for the next fiscal year.

15 minutes ago - Smart Cities Dive

View down center of street in Milwaukee, Wisconsin

Milwaukee Launches Vision Zero Plan

Seven years after the city signed its Complete Streets Policy, the city is doubling down on its efforts to eliminate traffic deaths.

1 hour ago - Urban Milwaukee

Street with parking protected bike lane and parked cars in downtown Portland, Oregon.

Portland Raises Parking Fees to Pay for Street Maintenance

The city is struggling to bridge a massive budget gap at the Bureau of Transportation, which largely depleted its reserves during the Civd-19 pandemic.

July 8 - Willamette Week

Urban Design for Planners 1: Software Tools

This six-course series explores essential urban design concepts using open source software and equips planners with the tools they need to participate fully in the urban design process.

Planning for Universal Design

Learn the tools for implementing Universal Design in planning regulations.

Associate/Senior Planner

Gallatin County Department of Planning & Community Development

Senior Planner

Heyer Gruel & Associates PA