Want to Live at Costco? Some People May Get That Option Soon Enough

Image source: Getty Images

I shop at Costco often enough that my husband likes to joke that I should just move in. Well, some Los Angeles residents may soon get that option -- sort of.

Costco is building a Los-Angeles-area warehouse that's different from its traditional stores. That's because the new location will also include 800 apartments above it. Better yet, Costco will be designating 184 of those apartments as affordable housing units to address the city's housing crisis.

The Costco touch

You might assume that any apartment that sits above a Costco warehouse will be a bare-bones sort of place to live. But Costco plans to include a host of amenities for residents of its apartment complex, including a fitness area, rooftop pool, and urban gardens. And frankly, I wouldn't expect anything less. This is the same company that doesn't just sell you a tire for your car -- it also throws in lifetime maintenance.

Now at first, the idea of combining a warehouse club store and apartment complex might seem odd. But let's remember that in the wake of the COVID-19 pandemic, many real estate developers have been forced to get creative and come up with ways to make good use of commercial buildings in a market where there's generally less demand for office and retail space.

In fact, in recent years, there's been an uptick in office buildings and malls undergoing conversions to become mixed-use properties -- meaning, part commercial and part residential. So while Costco's housing project is innovative to some degree, it's also been done before.

Is living above a Costco store a good idea?

Because the above project is still in development and limited to a specific city, most of us won't get the option to contemplate whether it's a good idea to live above a Costco store. But I can totally see there being pros and cons.

First, the obvious benefit -- you get easy access to Costco. My closest store is 15 minutes away, but sometimes even that becomes a hassle during a busy week. I can't imagine how convenient it would be to have Costco access within a couple of minutes. And the idea of being able to go on foot for a single item -- say, a gallon of milk -- sounds nice.

That said, for someone like me, instant access to Costco could become a bad thing. I have a tendency to make impulse purchases at Costco, so the more often I'm inclined to pop in, the more money I might spend instead of keep in my savings account where it belongs. In fact, because of Costco's rotating inventory, I like to encourage people to shop there carefully -- meaning, don't go more often than necessary, and try to stick to a list.

I also can't imagine what it would be like to live above a store like Costco given how busy it tends to be. I'd imagine Costco will find some way to shield apartment residents from the bustle and noise of the warehouse. But still, if you work from home or perhaps have a baby and need quiet hours during the day, then living above a Costco is something I probably wouldn't recommend.

I'll also say that my Costco parking lot tends to be perpetually filled, and I've heard from friends in different parts of the country that their experience is similar. Ideally, Costco will create a separate parking area for its apartment residents so they don't have to fight for a spot with customers coming in and out.

Would it be worth it?

All told, the idea of living above Costco is intriguing, and even a tiny bit appealing to me. But when I think about it, I probably wouldn't want to do it. For better or worse, the overwhelming majority of members won't have that option -- at least not anytime soon. But it'll be interesting to see how Costco's housing project pans out -- and whether residents of its new complex will get a free membership thrown in as an added perk. That could really go either way.

We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team. Maurie Backman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Costco Wholesale. The Motley Fool has a disclosure policy .