As of the census of 2000, there were 16,582 people, 5,859 households, and 3,755 families residing in the city. The population density was 713.2 people per square mile (275.4/km²). There were 7,034 housing units at an average density of 302.5/sq mi (116.8/km²). The racial makeup of the city was 68.18% white, 6.12% black or African American, 1.44% Native American, 1.97% Asian, 0.08% Pacific Islander, 16.39% from other races, and 5.83% multiracial. 40.40% of the population was Hispanic or Latino.
There were 5,859 households out of which 38.7% had children under the age of 18 living with them, 39.3% were married couples living together, 17.9% had a female householder with no husband present, and 35.9% were non-families. 27.6% of all households were made up of individuals and 9.9% had someone living alone who was 65 years of age or older. The average household size was 2.80 and the average family size was 3.45.
In Desert Hot Springs the age of the population was spread out with 33.3% under the age of 18, 9.7% from 18 to 24, 29.4% from 25 to 44, 16.5% from 45 to 64, and 11.1% who were 65 years of age or older. The median age was 30 years. For every 100 females there were 96.8 males. For every 100 females age 18 and over, there were 91.6 males. Desert Hot Springs has a reputation as an active adult community, where many retirees choose to live.
The median income for a household in the city was $25,987, and the median income for a family was $29,126. Males had a median income of $27,873 versus $21,935 for females. The per capita income for the city was $11,954. About 22.4% of families and 27.5% of the population were below the poverty line, including 37.1% of those under age 18 and 15.0% of those age 65 or over, one of the highest for cities over 10,000 in southern California.
Several racial or ethnic groups live in Desert Hot Springs, with the largest group of Mexican and Central American ancestry. Ethnic areas such as the Korean American section of 8th Street and Cholla Drive, thousands of American Jews made the city their home, and according to the Desert Chapter of the National Association for the Advancement of Colored People (NAACP), the city's population is over 10 percent black. The city has a high proportion of Native Americans, most of whom are members of the Cahuilla tribe in proximity to the Agua Caliente Mission Band of Cahuilla Indians tribal board in Palm Springs.