By: The Pottawatomie County Economic Development Corporation (PCEDC) | 2.02.26
Download a printer-friendly version of the 2025 review report.
Much of Pottawatomie County’s key economic data reflected a generally steady local market and climate throughout the year. The county labor force remained strong, ending the year at over 13,500, and sales tax revenues grew some from the year prior. While home sales and the count of overall building permits issued in Pottawatomie County decreased slightly, the number of permits issued for dwellings actually increased in 2025, showing a movement in the right direction as housing becomes an increasingly crucial part of development for the growing county.
Pottawatomie County Employment & Workforce
Pottawatomie County’s workforce, defined by those working or looking for work, has been strong and consistent over the past several years, falling at just around 13,500 at the end of 2025. Although the workforce numbers fluctuate regularly, Pottawatomie County’s labor force data has generally held steady, even when 2020 and the following COVID-impacted months are plotted out. Riley County’s labor force has also remained pretty steady within the last few years, with a year-end labor force of 37,805.
Although labor force numbers have hovered in steady ranges for both Pottawatomie and Riley counties, the unemployment rates for both counties have proven more volatile, at least when COVID years are considered. Moving past COVID, however, the (non-seasonally adjusted) unemployment rates for the state and both Pottawatomie and Riley counties have settled mostly between 2-4%. Additionally, both counties have typically remained near or below the state unemployment rate, with most rate fluctuations being similar across the state and Pottawatomie and Riley counties.
Pottawatomie County Building Permits
Pottawatomie County reports that 173 building permits were issued in the county in 2025, which is a slight decrease from the 2024 permits issued (176). However, per the County’s 2025 Annual Building Permit Report, the decrease is largely attributable to a decrease in accessory permits issued for structures like sheds. Permits for dwellings actually increased year-over-year, with 30 more home permits applied for during 2025 than 2024. This is a positive indicator of residential development activity—something that has been identified by multiple recent assessments as crucial for meeting housing needs in several of our communities.
In examining the past few years, total permits remain down from a peak in 2021. Prior to 2021, the county recorded a mostly upward trend in permits issued (excluding a dip in 2018). However, commercial permit issuances have always been relatively few and far between in the past decade.
Pottawatomie County Sales Tax and Retail Sales Data
Pottawatomie County’s total sales and use tax revenues have steadily increased over the past few years. Although percentage growth has been relatively small, it appears to be steady, especially when the past decade is examined.
Sales tax growth generally is both a positive indicator of consumer base growth and spending, which in turn supports local business growth and development. From a county or municipality’s perspective, increased sales and use tax collections are also beneficial in funding infrastructure and amenities, as well as any incentives/improvements needed to encourage further development; this often creates strong alignment between counties, municipalities, and economic development agencies, like the PCEDC.
Pottawatomie County Population and Housing Trends
While many Kansas counties are grappling with declining populations, Pottawatomie County is faced with the unique challenge and opportunity of population growth. Projected by the Center for Economic Development and Research to grow to 36,285 residents by 2072, Pottawatomie County’s future is promising, with new opportunities on the horizon for individuals and businesses.
However, along with providing additional human resources and expanded commercial opportunities, population growth presents challenges. Infrastructure and housing, particularly, have to be ready to handle the needs of a rapidly growing population. The County’s comprehensive plan, Plan Pottawatomie 2040, which lays out the “big-picture” vision and action steps for the County over the coming years, calls out population growth as a key consideration, especially around Blue Township and along the U.S.Highway 24 corridor. Population growth is anticipated to impact land use and development, demanding adaptability as areas of the county will face urban issues more frequently. The plan also acknowledges the need to balance growth with the high quality of life and rural character of the County, a challenge that will undoubtedly create discussion as new development proposals arise.
Pottawatomie County Housing in 2025 and Beyond
Of course, with population growth comes greater demand for housing of all kinds. While single-family housing may come to mind first, there is also a need for multifamily and elder housing to help support the needs of an increasingly diverse population.
The need for new housing options has come up numerous times in our own research through the Kansas Department of Commerce’s Housing Assessment Tool, which we deployed to study the housing needs of the Wamego, Blue Township, and St Marys communities in 2025 and beyond. While each community has unique aspects and needs, all of these communities had a need for increased housing, particularly moderately-priced options and workforce housing, and could benefit from incentives launched to help mitigate high costs of development and rehabilitation/construction.
Home Sale Trends in Pottawatomie County
As is a challenge throughout the country, housing supply and costs can present barriers for would-be home homebuyers in Pottawatomie County. Median home sale prices in the county trend a bit higher than those in Riley County, with the 2025 median sale price in Pottawatomie County falling at $337,500, compared to $279,948 in Riley County, per the Flint Hills Association of Realtors’ December Market Update Reports.
While home prices can be a barrier for some, there is still activity on the market; the average amount of time on the market for homes in Pottawatomie County was 35 in 2025, a decrease from 42 the previous year, and over 270 homes sold during 2025. This movement is generally positive, showing that there is demand for housing, even as the home sales count decreased slightly from the years prior.
Pottawatomie County and Kansas Development in 2026
Kansas as a whole is increasingly well-positioned for development. According to Site Selection Magazine, Kansas ranks among the top half of the country for tax competitiveness; while the State isn’t among the top on the list, it has jumped up in rankings since 2020, indicating movement toward increased competitiveness on a national scale.
Zooming into Pottawatomie County, there are a number of opportunities and challenges to address for the best development outcomes. Roundtable conversations from the fall of 2025 helped us narrow in to both local and broader concerns within the business community, including:
- Needs for entry-level and specialty talent
- Difficulty recruiting interns
- High interest rates
- High costs of living
- Uncertainty on the Federal Level
Along with these challenge areas, however, roundtable participants generally shared great optimism for the future of Pottawatomie County, with enthusiasm for returning and new residents coming into the area. Our investors and community partners additionally identified increased collaboration between local governments and industry, housing and development opportunities, and community pride as particular strengths for Pottawatomie County moving forward.
Pottawatomie County in 2026 and Beyond
As we move into 2026, the PCEDC’s core mission and approaches remain the same: to drive community-wide economic prosperity through partnerships by acting as an advocate, informer, and connector. During 2026 in particular, the PCEDC is focused on implementing Year Two priorities of Advance Pottawatomie 2030—strengthening business growth, expanding workforce opportunities, addressing housing challenges, and enhancing collaboration across communities.
Want to engage with the mission and vision of the PCEDC? Reach out to us! For info on sites/buildings available for commercial purchase or lease in Pottawatomie County, visit the Greater Manhattan Economic Partnership’s LOIS page.
Download a printer-friendly version of the 2025 review report.
