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Buffalo County Economic Pulse | January 2026

Welcome to the Buffalo County Economic Pulse report where we break down the latest trends shaping the economic landscape of Kearney and Buffalo County.

This interactive snapshot is designed to empower businesses, policymakers, and residents with the insights they need to make informed, data-driven decisions.

Take a look at the data, then skip down to read Trevor's Take.

 

Trevor's Take:

Trevor Lees HeadshotTrevor Lee, President of the Development Council for Buffalo County

December 2026 Economic Indicators

Buffalo County enters 2026 with solid momentum, even as the wider regional picture turns a bit more uncertain.

Travel & Tourism stay strong. December enplanements hit 2,381, well ahead of last year, and lodging tax collections continue to outperform 2024. People are still coming—and spending.

Commerce is a mixed read. Brick‑and‑mortar retail looks steady, but October vehicle and retail sales dipped, suggesting families are still navigating higher costs. One head‑scratcher in the data is the drop in use‑tax collections. Use tax applies when taxable items or services are bought from out‑of‑town or online retailers and local sales tax wasn’t collected, ensuring those purchases are still taxed at the same rate (5.5% state + local) as in‑town buys. The decline simply reflects the absence of a large 2024 project—not a shift in everyday household spending.

Housing & Development remain a challenge. December home sales softened, and just 89 new housing units were added in 2025—far below the prior year. Permits are flat. After digging deep into the countywide housing landscape over the past year, I’ve learned the issue is far more complex than just factors like material costs, local and state policies, interest rates, land availability, etc. Each of these play a role and some could (and should) be reviewed to find cost savings, but I’ve come to the conclusion that if entry‑level homes were even marginally profitable to build, they’d be getting built. It will take bold leadership, market shifts, and frankly, a few lucky breaks. This isn’t a concession but an acknowledgement that reversing the trend won’t be solved overnight and not all factors are within our control.

Workforce indicators stay healthy. November’s labor force rose to 29,651, and unemployment remains a very low 2.6%. One of the brightest spots in our local economy.

Regional & Statewide Context

The Midwest is feeling the squeeze—manufacturing, agriculture, tariff pressures, and weaker purchasing power have slowed regional momentum. Nebraska is still steadier than many states, but higher interest rates and softer ag conditions are keeping growth modest.

Tyson Closure: The Big Story Ahead

Tyson’s Lexington plant officially closed January 20, eliminating 3,200+ jobs and projected to contribute to more than 7,000 projected statewide job losses once ripple effects are included. Analysts estimate over $3.2 billion in annual economic impact—an enormous shock to Nebraska.

Dawson County takes the direct hit, but Buffalo County won’t be untouched. Short term, I expect more job seekers entering our labor market and tighter household spending. Longer term, shifts in population, business stability, and regional hiring patterns may reshape how our community grows and adapts. These effects will unfold gradually, not all at once.

Bottom Line

Buffalo County remains steady—strong tourism, stable retail fundamentals, and a solid workforce. But with a slowing Midwest, softer statewide ag conditions, and the aftershocks of the Tyson closure, 2026 will require some vigilance and adaptability. Some changes are already here; others are on the horizon.

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