Pottawatomie County Economic Update Quarter 1 2026

By: The Pottawatomie County Economic Development Corporation (PCEDC) | 6.16.26

The initial economic data for Pottawatomie County is strong, with a steady labor force around the upper 13,000s (although it peaked to 14,001 in February), and sales tax revenues increasing over the same quarter last year. Home sales were also fairly strong for the early spring months, with the Q1 2026 home sales count outpacing the same from 2025 by ten sales, according to the March 2026 Pottawatomie County Housing Report from the FHAR. The standout data point for Q1 was the number of county building permits issued, which more than doubled from the year prior; this increase was driven by both dwellings and ‘other’ permit issuances. 

Download a printer-friendly version of the Q1 report

 

Pottawatomie County Employment & Workforce  

Pottawatomie County’s workforce has been steadily hovering in the upper 13,000s, ending the quarter at over 13,791, per the Kansas Department of Labor Information Center. Additionally, the (non-seasonally adjusted) unemployment rate for Pottawatomie County remained below the state average each month, even as the state rate peaked at 4.3% in February of 2026.

Pottawatomie County Sales Tax and Retail Sales Data 

Pottawatomie County’s sales and use tax collection totals for 2025 exceeded those of 2024, and the pattern of moderate growth continued early into this year. The Q1 2026 sales tax total was over $44,000 more than the Q1 sales tax total for 2025, suggesting a solid start to commercial activity for 2026.

 

 Pottawatomie County Housing Trends

While the winter and early spring months are generally quiet for home sales, Q1 of 2026 wrapped up with 50 total home sales. This is an increase of over 23% from 2025, according to the Flint Hills Association of Realtors’ March 2026 report. That said, the 2024 Q1 total for the county was 52 sales, so this change may not be a reflection of a long-term market change, rather a market fluctuation.

While home sales saw a slight increase so far, building permits issuances have nearly doubled YOY. This is a promising sign for development, particularly residential development, in Pottawatomie County. By the end of March, the county had recorded 54 total issued permits, a large increase from the 23 issued in Q1 of 2025. This increase was significantly driven by both dwellings permits and ‘other permits’ (includes sheds, decks, etc.), and includes one new commercial permit. While time will best tell if the trend continues, increased construction and development suggest a strong start to the year.

National & Global Concerns 

Data Center Development Projects Increasingly Proposed Across Country and the Flint Hills Region

Communities across the United States are increasingly being approached with data center development opportunities, driven by rapid growth in cloud computing, artificial intelligence, and digital infrastructure. Pottawatomie County and the Greater Manhattan region are now part of that conversation, particularly as our area offers the ability to deliver power, connectivity, land, and coordinated governance, which are sought-after characteristics during the site selection process for data center development. 

While there are many common misconceptions regarding data centers, there are nuanced benefits and costs to consider for any region approached for these developments. Infrastructure demands, for example, are key and require careful consideration of any individual project. Additionally, as a newer development type, regulatory and policy influences are still emerging, with some communities having to make initial decisions at a local level of how to handle (or not handle) data center projects. 

To help provide a foundation to help local leaders evaluate whether—and under what conditions—data center development aligns with regional priorities, we have compiled a fact-based Data Center Reference Guide. Additionally, the PCEDC and the Kaw Valley Chamber of Commerce hosted a Community Conversation around the topic on June 3rd in St. Marys. Speakers included Rep. Francis Awerkamp and water expert Bradley Petras. 

Download a printer-friendly version of the Q1 report