U.S. Highway 151 runs through Cascade but in 2002 a four-lane bypass took traffic north around the city. Iowa Highway 136 runs from north to south through Cascade.
American Iowa Manufacturing is in Cascade. Cascade Lumber Company provides awood to residents and businesses. The area has experienced economic development with construction of the four-lane 151.
Cascade has three schools - Cascade Elementary, Aquin Elementary, and Cascade High School.
As of the census of 2000, there were 1,958 people, 776 households, and 511 families residing in the city. The population density was 1,731.2 people per square mile (669.0/km²). There were 820 housing units at an average density of 725.0/sq mi (280.2/km²). The racial makeup of the city was 99.28% White, 0.10% Native American, 0.10% Asian, and 0.51% from two or more races. Hispanic or Latino of any race were 0.31% of the population.
There were 776 households out of which 32.7% had children under the age of 18 living with them, 56.7% were married couples living together, 6.4% had a female householder with no husband present, and 34.1% were non-families. 29.9% of all households were made up of individuals and 13.3% had someone living alone who was 65 years of age or older. The average household size was 2.44 and the average family size was 3.08.
In the city the population was spread out with 26.0% under the age of 18, 8.6% from 18 to 24, 26.6% from 25 to 44, 20.0% from 45 to 64 and 18.8% who were 65 years of age or older. The median age was 37 years. For every 100 females there were 99.8 males. For every 100 females age 18 and over, there were 94.4 males.
The median income for a household in the city was $40,273, and the median income for a family was $47,813. Males had a median income of $31,324 versus $22,209 for females. The per capita income for the city was $18,280. About 7.8% of families and 11.1% of the population were below the poverty line, including 12.4% of those under age 18 and 13.4% of those age 65 or over.