As of the census of 2000, there were 58,598 people, 25,216 households, and 14,600 families residing in the city. The population density was 955.8/km² (2,475.3/mi²). There were 26,048 housing units at an average density of 424.9/km² (1,100.3/mi²). The racial makeup of the city was 75.76% white, 2.02% African American, 0.21% Native American, 17.22% Asian, 0.14% Pacific Islander, 1.41% from other races, and 3.24% from two or more races. Hispanic or Latino of any race were 4.65% of the population.
There were 25,216 households, of which 27.2% had resident children under the age of 18, 48.5% were married couples living together, 7.0% had a female householder with no husband present, and 42.1% were non-families. 32.6% of all households were made up of individuals and 10.8% had someone living alone who was 65 years of age or older. The average household size was 2.30 and the average family size was 2.95.
In the city the population was spread out with 21.2% under the age of 18, 4.9% from 18 to 24, 32.4% from 25 to 44, 25.9% from 45 to 64, and 15.6% who were 65 years of age or older. The median age was 40 years. For every 100 females there were 95.8 males. For every 100 females age 18 and over, there were 93.6 males.
According to a 2007 estimate, the median income for a household in the city was $119,046, and the median income for a family was $153,197. Males had a median income of $91,051 versus $60,202 for females. The per capita income for the city was $56,257. About 3.2% of families and 4.8% of the population were below the poverty line, including 4.0% of those under age 18 and 5.0% of those age 65 or over. The reason for the difference between the household income and the family income can be explained by the fact that some areas of Palo Alto are populated by graduate students, who do not necessarily have to live on the Stanford campus.
Palo Alto is served by two major freeways, Highway 101, and Interstate 280, and is traversed by the Peninsula’s main north-south boulevard, El Camino Real (SR 82).
The city is also served indirectly by State Route 84 which traverses the Dumbarton Bridge to the north. None of the highways on the Peninsula side of the bridge have been upgraded to freeway status due to opposition from residents of Palo Alto, Atherton and Menlo Park. The freeway opponents fear that upgrading Highway 84 will encourage more people to live in Alameda County (where housing is more affordable) and commute to jobs in the mid-Peninsula area, thus increasing traffic in their neighborhoods to the south of the bridge. Also, Palo Alto has only one major crosstown arterial, Page Mill Road / Oregon Expressway, which completely connects the two freeways. Because of these two defects in the regional road network, Palo Alto is notorious for severe traffic congestion at rush hour.
Palo Alto is served by Palo Alto Airport of Santa Clara County (KPAO), one of the busiest single-runway general aviation airports in the country. It is used by many daily commuters who fly (usually in private singled engine aircraft) from their homes in the Central Valley to work in the Palo Alto area.
Train service is available via Caltrain with service between San Francisco and San Jose and extending to Gilroy. Caltrain has two regular stops in Palo Alto, one at University Avenue (local and express) and the other at California Avenue (local only). A third, located beside Alma Street at Embarcadero Road, is used to provide special services for occasional sports events (generally football) at Stanford Stadium. The University Avenue stop is the second most popular (behind 4th and King in San Francisco) on Caltrain's entire line.
The Santa Clara Valley Transportation Authority (VTA) provides primary bus service through Palo Alto with service to the south bay and Silicon Valley. The San Mateo County Transit District (SamTrans) provides service to San Mateo County to the north. The Stanford University Free Shuttle (Marguerite) provides a supplementary bus service to and from the campus, and the Palo Alto Free Shuttle (Crosstown and Embarcadero), which circulates frequently, and provides service to major points in Palo Alto, including the main library, downtown, the Municipal Golf Course, the Caltrain University Ave. Station, and both high schools.
There are no parking meters in Palo Alto and all municipal parking lots and multi-level parking structures are free (limited to two or three hours any weekday 8am–5pm). The lack of parking meters often makes it difficult to find parking downtown. Downtown Palo Alto has recently added many new lots to fill the overflow of vehicles.