Does a Costco Membership Make Sense if You Live in a City?

A basic membership at Costco costs $60 a year, while an Executive membership costs $120 but gives you 2% cash back on your purchases. Whichever membership you choose, it can be more than worth the money when you consider the savings you might reap by being able to purchase groceries and household items in bulk.

But the ability to bring home bulk items from Costco hinges on having a place to store them. And if you live in a city, you may not have a lot of storage space at home.

Of course, this isn't a given. Not every city is like New York, for example, where a 400-square-foot studio is considered a generous-sized home.

But generally speaking, city dwellers tend to have less room to store things at home than those in suburban and rural areas. So that begs the question -- is a Costco membership worth it if you live in a city? And the answer might be a resounding yes, depending on what you plan to use your membership for.

Costco sells more than just food and household essentials

Many people think of Costco as a place to buy milk, eggs, meat, and toilet paper in bulk. But Costco's offerings extend well beyond these and similar items.

If you walk around a Costco warehouse, you'll see everything from a clothing aisle to a toy aisle to a beauty aisle. Costco also carries a wide variety of electronics, household appliances, and more. So all told, even if you don't buy a single grocery item at Costco, a membership could still very much end up being worth it.

Let's say you pay $60 for a basic Costco membership and only shop there once during the year. If your sole Costco purchase is a laptop you manage to save $200 on, guess what? You've just paid for your membership and then some.

Similarly, if you're someone who likes to travel, it could be worth joining Costco for the travel packages alone. A Costco vacation package to the Caribbean, for example, might cost you $2,500 for a week's stay. Booking a comparable package on your own or even with an outside travel agent might cost you $3,000.

So in that case, it's pretty easy to justify the expense of a Costco membership. And it doesn't matter where you live -- everyone could use a vacation.

A membership could be worth it even if you never set foot in the store

If you live in a city, limited storage space may not be your only impediment to joining Costco. You might also have a hard time actually getting to a Costco store if you're someone without a car.

But the reality is that you can benefit from a Costco membership even if you never so much as enter a store. Not only does Costco.com carry a wide range of products you can order to have shipped to your door (often for free), but you can easily book your travel online. So all told, a membership could pay even if you never see what a Costco warehouse looks like in person.

You may be inclined to think that a Costco membership is more suitable for people who live outside of cities. But there's much to be gained by joining Costco even if you live in a tiny apartment with no storage space whatsoever.