Columbia was settled in Pre-Columbian times by the mound building Mississippian culture of Native Americans. In 1818, a group of settlers incorporated under the Smithton Land Company purchased over 2,000 acres (8 km²) and established the village of Smithton near present-day downtown Columbia. In 1821, the settlers moved and re-named the settlement Columbia—a poetic name for the United States. The founding of the University of Missouri in 1839 established the city as a center of education and research. By 1851, two other institutions of higher education, Stephens College and Columbia College were established within the city.
Located among small tributary valleys of the Missouri River, Columbia is roughly equidistant from St. Louis and Kansas City. Greater St. Louis is 70 miles to the East, and the Kansas City Metropolitan Area is 100 miles to the West. Today, Columbia has a highly diversified economy, and is often ranked high for its business atmosphere. Never a strong center of industry and manufacturing, the city's economic base relies on the education, medical, technology and insurance industries. Studies consistently rank Columbia as a top city in which to live for educational facilities, health care, technological savvy, economic growth, cultural opportunities and cost of living. The city has been ranked as high as the second-best place to live in the United States by Money Magazine's annual list and is regularly in the top 100. Residents of Columbia are usually described as "Columbians."
In 2000, the city had a day time population of 106,487. As of the census of 2000, there were 84,531 people, 33,689 households, and 17,282 families residing in the city. The population density was 1,592.8 people per square mile (615.0/km²). There were 35,916 housing units at an average density of 676.8/sq mi (261.3/km²). The racial makeup of the city was 81.54% White, 10.85% Black or African American, 0.39% Native American, 4.30% Asian, 0.04% Pacific Islander, 0.81% from other races, and 2.07% from two or more races. 2.05% of the population were Hispanic or Latino of any race.
There were 33,689 households out of which 26.1% had children under the age of 18 living with them, 38.2% were married couples living together, 10.3% had a female householder with no husband present, and 48.7% were non-families. 33.1% of all households were made up of individuals and 6.5% had someone living alone who was 65 years of age or older. The average household size was 2.26 and the average family size was 2.92.
In the city, the population was spread out with 19.7% under the age of 18, 26.7% from 18 to 24, 28.7% from 25 to 44, 16.2% from 45 to 64, and 8.6% who were 65 years of age or older. The median age was 27 years. For every 100 females, there were 91.8 males. For every 100 females age 18 and over, there were 89.1 males.
The median income for a household in the city was $33,729, and the median income for a family was $52,288. Males had a median income of $34,710 versus $26,694 for females. The per capita income for the city was $19,507. About 9.4% of families and 19.2% of the population were below the poverty line, including 14.8% of those under age 18 and 5.2% of those age 65 or over.
The economy of Columbia is historically dominated by Education, Healthcare and the Insurance industry. Jobs in Government are also common, either in Columbia or a half-hour away in Jefferson City. Commutes into the city are also common and in 2000 the city had a day time population of 106,487. The Columbia Regional Airport and the Missouri River Port of Rocheport connect the region with trade and transportation. The University of Missouri is by far the city's largest employer..
The economy of the metro area is slightly larger than that of the Bahamas. With a Gross Metropolitan Product of $5.84 billion, Columbia's economy makes up nearly 3.0% of the Gross State Product of Missouri. Insurance corporations headquartered in Columbia include Shelter Insurance, and Columbia Insurance Group. Other organizations include the MFA Incorporated, Missouri State High School Activities Association and MFA oil. Companies such as Datastorm Technologies, Inc., Slackers CDs and Games and Carfax were founded in Columbia.
Columbia Transit operates a bus system focusing around downtown, and has been in service since 1965. Currently, 1.2 million passengers board annually along the system's eight fixed routes and two University Shuttle routes. The system constantly experiences growth in service and technology. A $3.5 million project to renovate and expand the Wabash Station, a rail depot built in 1910 and converted into the city's transit center in the mid-1980s, was completed in summer 2007. Recent budget shortfalls have lead to slightly reduced Saturday service and new Saturday routes, as well as the elimination of under used routes and a 100% increase in basic fares. Now $1.00, the fare was $.50 for nearly 20 years, and was one of the lowest among similar cities in the region. In 2007, a Transit Master Plan was created to address the future transit needs of the city and county with a comprehensive plan to add infrastructure with three key phases. The five to ten year plan intends to add service along the south west, south east and north east sections of Columbia and develop alternative transportation models for Boone County. 2009 Federal Stimulus money granted to the city will go towards purchasing five replacement buses that have until recently not been approved for funding. There is a possibility natural gas buses could be purchased, as this has been something the Council has considered for years.
The city's current mayor, Darwin Hindman, is largely in favor of a non-motorized transportation system, and can often be seen riding his bicycle around the city. Columbia is also known for its M.K.T. Spur of the Katy Trail State Park, which allows foot and bike traffic across the city, and, conceivably, the state. It consists of a soft gravel surface, excellent for running and biking. Columbia also is preparing to embark on construction of several new bike paths and street bike lanes thanks to a $25 million grant from the federal government. The city is also served by Northwest Airlines at Columbia Regional Airport, the only commercial airport in Mid-Missouri. I-70, US 63, and US 40 are the main freeways used for travel to and from Columbia. Within the city, there are three state highways Route 763, Route 163, and Route 740.
Health Care is a large sector of Columbia's economy with nearly one-in-six people working in a health-care related profession and a physician density that is about 3 times the United States average. Columbia's hospitals and supporting facilities are a large referral center for the state, and medical related trips to Columbia are common. There are three hospital systems within the city and six hospitals with a total of 1,105 beds. University of Missouri Health Care operates four hospitals: Columbia Regional Hospital, University of Missouri Hospital, Ellis Fischel Cancer Center and University of Missouri Children's Hospital. Boone Hospital Center is administered by BJC Healthcare and operates several clinics and outpatient locations. Harry S. Truman Memorial Veterans' Hospital is administered by the United States Department of Veterans Affairs.
There is also a large amount of medically-related industry in Columbia. The University of Missouri School of Medicine uses university owned facilities as teaching hospitals. The University of Missouri Research Reactor Center is the largest research reactor in the U.S. and produces radioisotopes used in nuclear medicine. The center serves as the sole supplier of the active ingredients in two U.S. Food and Drug Administration-approved radiopharmaceuticals and produces Fluorine-18 used in PET imaging with its cyclotron.