As of the 2000 census, there are 529,121 people residing in the city or Portland, organized into 223,737 households and 118,356 families. The population density is 1,521/km² (3,939.2/mi²). There are 237,307 housing units at an average density of 682.1/km² (1,766.7/mi²). The racial makeup of the city is 77.91% White, 6.64% African American, 6.33% Asian, 1.06% Native American, 0.38% Pacific Islander, 3.55% from other races, and 4.15% from two or more races. 6.81% of the population are Hispanic or Latino of any race.

Out of 223,737 households, 24.5% have children under the age of 18 living with them, 38.1% are married couples living together, 10.8% have a female householder with no husband present, and 47.1% are non-families. 34.6% of all households are made up of individuals and 9% have someone living alone who is 65 years of age or older. The average household size is 2.3 and the average family size is 3.

In the city the population is spread out with 21.1% under the age of 18, 10.3% from 18 to 24, 34.7% from 25 to 44, 22.4% from 45 to 64, and 11.6% who are 65 years of age or older. The median age is 35 years. For every 100 females there are 97.8 males. For every 100 females age 18 and over, there are 95.9 males.

The median income for a household in the city is $40,146, and the median income for a family is $50,271. Males have a reported median income of $35,279 versus $29,344 reported for females. The per capita income for the city is $22,643. 13.1% of the population and 8.5% of families are below the poverty line. Out of the total population, 15.7% of those under the age of 18 and 10.4% of those 65 and older are living below the poverty line. Oregon has a 9% income tax which tends to suppress accurate reporting. Figures delineating the income levels based on race are not available at this time.

Portland is becoming increasingly diverse. Recent trends have more young people moving into the city as older, more established white families with children move to the suburbs. Although the majority of the city's population is still white, 60% of people moving to Oregon are non-white[citation needed].

However, though the population of the city is increasing, the total population of children is diminishing, which has put pressure on the public school system to close schools. A recent study found that Portland is now educating fewer children than it did in 1925, and the city will have to close the equivalent of three to four elementary schools each year for the next decade.

Portland's public school system has remained racially imbalanced. As of the 2000 census, three of its high schools (Cleveland, Lincoln and Wilson) were over 70% white, while Jefferson High School was 86% non-white. The remaining four schools are more ethnically balanced.

The imbalance can be explained through Portland's demographic history. Prior to the Second World War, Portland had very few residents of non-European ethnicity. In 1940, Portland's African-American population was approximately 2,000 and largely consisted of railroad employees and their families. During the war-time liberty ship construction boom, the need for workers drew many blacks to the city. Due to institutionalized racism in the real-estate community at the time, this new influx of blacks was guided to specific neighborhoods, such as the Albina district and Vanport. The post-war destruction of Vanport eliminated the only integrated neighborhood, and the ghettoization of blacks into the NE quadrant of the city continued.

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