By: The Pottawatomie County Economic Development Corporation (PCEDC) | 2.04.25
Download a printer-friendly version of the 2024 review report.
Looking at recent reports, Pottawatomie County seems to have settled into new data patterns as we move well past 2020. In fact, 2023 and 2024 data for numbers of homes sold, total building permits issued, sales and use tax revenues, and labor force trends, compare very closely. Given national concerns regarding inflation and the uncertainties of a major election year, this seeming steadiness in commercial activity is generally positive for Pottawatomie County. However, challenges regarding rapid county growth, ongoing affordability issues for housing and essentials, and even local workforce displacement, present future challenge areas, as well as opportunity, for the county in 2025 and beyond.
Pottawatomie County Employment & Workforce
Pottawatomie County’s workforce held steady in 2024, with similar totals and unemployment rates as in 2023. Seasonal fluctuations reflected in the unemployment rates in Pottawatomie and Riley counties are echoed by state-wide unemployment patterns, suggesting that both counties are experiencing trends consistent with conditions found in the rest of the state. Pottawatomie county, in particular, has generally maintained an unemployment rate below the Kansas State average. Closing out the year, Pottawatomie county had over 12,000 people in the labor force – that is, working or looking for work.
Despite relatively unremarkable data from the year, the announcement of the closure of Caterpillar’s Wamego plant, which is anticipated to cease operations by late 2025, presents a challenge to local workers, and may impact unemployment numbers in coming months. This closure, which displaces several hundred workers, presents a significant challenge to workers living in Pottawatomie and nearby counties, but does also open up a significant manufacturing space for the potential move-in of a new company. However, within the short-term, the residential and business community is braced for impact. The PCEDC’s early efforts to ease the impacts of Caterpillar’s closure include convening a local task force, collaborating with state and federal agencies to gather relevant resources, working with local employers and hosting a career fair, and marketing the plant to potential tenants/employers.
Pottawatomie County Building Permits
According to the county’s 2024 Annual Building Permit Report, the county issued 176 building permits, representing over $33,270,000 in new construction. Out of the permits issued, 76 were for dwellings, and 43 of these dwellings were in the community of Blue Township, showing residential growth on the Pottawatomie County side of the Manhattan Metro. It’s worth noting that commercial permit activity was minimal, and even decreased by 4 permits, in 2024. The report does state that submissions for permit requests were lower than in previous years, as was the number of permits granted:
Pottawatomie County Sales Tax and Retail Sales Data
Pottawatomie County’s total sales and use tax revenues summed to $5,736,755 for 2024. This just exceeds last year’s total of $5,673,304. While this increase of just over $60,000 is a small percentage increase, it still is a promising indicator that commercial activity in Pottawatomie County held steady, even as concerns over price inflation continued within the national discourse. In the context of the last several years, this growth follows a general growth trend (with the exception of a slight year-over-year decrease in 2017) for the county.
Pottawatomie County Population and Housing Trends
Pottawatomie County is one of few Kansas counties projected to grow in the coming years, and the county’s growth is anticipated to be rapid. According to the Center for Economic Development and Business Research, Pottawatomie County’s population is expected to grow over 80% from 2014 to 2064, with a total population of over 49,000 at the end of that time period.
While a high growth rate is both an indicator of and a factor for economic growth, it also presents unique challenges. One of these challenges includes providing sufficient housing for new residents and workers. We know that housing affordability, particularly, can be a challenge on a local and national level, and calculations based on median incomes indicate that new housing in the Pottawatomie County area should ideally fall within the $1,279 to $2,557 per month price range to remain accessible to the average resident.
This benchmark is a useful, but challenging one as home prices are surging across the country. According to a recent Sherwood news article utilizing data from Redfin, the Median US Home price jumped 6.3% from December 2023 to December 2024, and price jumps were seen all across the country’s major metro areas, including, and even particularly, within the Midwest.
Of course, as with most economic issues, these national trends can be both an opportunity and a challenge. While soaring home prices are seen everywhere, including in Pottawatomie and Riley counties, prices remain lower in our area than in other parts of the US, offering a potential incentive for residential growth. That same Redfin report referenced by Sherwood news reports a national median home price of $427,670 in December. Meanwhile, the Flint Hills Association of Realtors report for December 2024 states that the median sale price of homes in Pottawatomie County was $296,000 that month. While this is a significantly lower figure, it is still a steep price for many in search of housing, especially those already making local wages, which also tend to be lower, matching the local cost of living.
Pottawatomie County Housing in 2024
The December 2024 report from the Flint Hills Association of Realtors shows that the moving average of home closings per month has fallen from a peak formed in 2020-2022, suggesting that home sales have slowed in the past couple of years (although sales in 2023 and 2024 mirrored each other closely). While this decrease may be largely attributable to a resetting of consumer behavior as we fully move past pandemic recovery years, it may carry implications regarding owners’ willingness to move, housing affordability, and the availability of housing stock. Again, to accommodate future growth, Pottawatomie County will want to see housing availability, and actual home sales, rise; while renting remains an (if not the only realistic) option for many, families and established individuals will likely look for purchase options while choosing to move to or stay in the county.
While the median sale price in Pottawatomie County hit a three-year peak of over $389,000 in August of 2024, summary statistics show that the median price of homes sold in Pottawatomie county dropped just barely (less than -1%) between 2023 and 2024. However, it is pertinent to note that median price changes (even much more drastic ones) may not be an indication of pricing trends, but instead a reflection of the quality/size/amenities of specific homes offered during a given year. For reference, Pottawatomie County homes sale (closed listing) counts were only one individual sale apart between 2023 and 2024, suggesting consistent activity on the market.
Comparing Pottawatomie County’s summary statistics for those in the Riley County Market Report for the same month, we do note that Pottawatomie County’s median home sale prices are significantly higher than those in Riley county – the 2024 median was $323,500 for the former and just $260,000 for the latter. However, this comparison does not take into account the specifics of the homes sold. The number of homes sold in Riley County was more than double the number in Pottawatomie County, coming in at over 800 sales in 2024.
Pottawatomie County Corporate Real Estate in 2024
2024 was a year of both positive and negative change for Pottawatomie County’s corporate real estate stock. In the multifamily sector, the Spruce Apartments project created 12 new affordable living spaces within a former historic building. Made possible through the careful collaboration of private developers, local and regional banks, state housing agencies, and community organizations, this project not only adds to multifamily housing stock in Pottawatomie County, but created 12 practical and affordable living spaces for residents and workers.
Several new industrial buildings are available within Pottawatomie County as well, offering opportunity for new move-ins. Building K on the Pottawatomie County side of Manhattan will offer over 112,000 square feet of industrial/warehouse/distribution space, and the Crane-Served Production Plant (former Caterpillar facility) in Wamego offers substantial infrastructure, including cranes, heavy power, outdoor storage, and rail access perfect for a large manufacturing operation.
Along with the availability of some of these larger spaces, there are a number of sites and buildings available for commercial purchase or lease within Pottawatomie County. To learn more visit the Greater Manhattan Economic Partnership’s LOIS page.
Pottawatomie County in 2025 and Beyond
As we move into 2025, the PCEDC team and board of directors is excited to help our outstanding Pottawatomie County businesses and community grow and prosper. With the vision of enhancing prosperity through partnerships, our key actions for this year – and beyond– are to advocate for the business community, inform on economic issues and opportunities, and connect vital partners.
Want to engage more in Pottawatomie County’s development or business community in 2025 or have questions regarding the mission and vision of the PCEDC? Reach out to us!
Download a printer-friendly version of the 2024 Review Report.
