On Wednesday, city and state leaders in South Los Angeles broke ground on a new mixed-use Costco building featuring hundreds of apartment units upstairs.
The developer, Thrive Living, will have Costco as its anchor retail tenant. The retailer will occupy the building's street level. The upper floors will then have 800 apartment units. The upcoming development at 5035 Coliseum St. in Baldwin Village will be the first mixed-use development in the nation to have the retailer as its anchor tenant, per the New York Post.
How Much Will the Apartments Cost?
The developers have not released rental prices for the apartment units. However, LA Housing Authority board chair Cielo Castro said the building will have 184 apartments dedicated to low-income households earning $41,610. The rental rate for these affordable units would be $1,040 per month, including utilities, CBS News reported.
The remaining 616 apartment units will be offered as nonsubsidized, affordable, and workforce housing.
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The development is expected to take two and a half years to complete. Residents will have access to amenities such as a fitness center, shared workspaces, study space, community rooms, courtyards, and a rooftop pool.
The developer also said residents will have access to healthy food options, a pharmacy, and optical and delivery services.
Los Angeles Housing Crisis
The development comes as the housing crisis in Los Angeles is worsening. As of August 2024, the median sale price of a home in the city is $1 million, according to data from Redfin. The average rent is $2,719, but this can fall to as low as $1,681 and go as high as $5,067, depending on the neighborhood, RentCafe reported.
For perspective, the median salary in Los Angeles is $72,384. At least 80% of all salaries in the city fall between $31,320 and $156,600.
Approximately 75,312 people in Los Angeles County are experiencing homelessness. This represents a slight decrease of about 0.3% from the numbers reported in 2022. In Los Angeles itself, the homeless population is estimated to be around 45,252, per data from the Los Angeles Homeless Services Authority.
