Formerly named Davers Ile and Craney Island, Harkers Island was occupied by Native Americans of the Coree tribe when the first European explorers arrived in the 16th century. Ownership of Harkers Island was first titled to Farnifold Green, a native of the Carolina colony, by the Lords Proprietors in 1707. Ebenezer Harker purchased the island in 1730, settled there with his family, and built a plantation and boat yard. The island became known as Harkers Island soon after his death. A large immigration of islanders fleeing the hurricane-ravaged Outer Banks in 1899 dramatically increased the island population, which largely depended on fishing and boat building. Separated from the mainland for centuries, many Harkers Island residents speak a distinct dialect of English.
As of the census of 2000, there were 1,525 people, 661 households, and 497 families residing in the CDP. The population density was 598.4 people per square mile (230.9/km²). There were 1,109 housing units at an average density of 435.2/sq mi (167.9/km²). The racial makeup of the CDP was 98.56% White, 0.33% Native American, 0.20% Asian, 0.07% from other races, and 0.85% from two or more races. Hispanic or Latino of any race were 0.13% of the population.
There were 661 households out of which 21.6% had children under the age of 18 living with them, 67.9% were married couples living together, 5.6% had a female householder with no husband present, and 24.7% were non-families. 21.3% of all households were made up of individuals and 9.7% 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 2.65.
In the CDP the population was spread out with 15.3% under the age of 18, 6.2% from 18 to 24, 21.6% from 25 to 44, 35.1% from 45 to 64, and 21.8% who were 65 years of age or older. The median age was 49 years. For every 100 females there were 94.8 males. For every 100 females age 18 and over, there were 95.6 males. The median income for a household in the CDP was $33,125, and the median income for a family was $35,492. Males had a median income of $37,375 versus $18,913 for females. The per capita income for the CDP was $19,790. About 13.6% of families and 15.5% of the population were below the poverty line, including 18.8% of those under age 18 and 19.1% of those age 65 or over.