Contrary to popular belief that Lake Junaluska is named after the famous Cherokee Indian leader, Chief Junaluska, the assembly is actually named after the nearby Mount Junaluska (now North Eaglenest Mountain), which is itself named after Chief Junaluska.
As of the census of 2000, there were 2,675 people, 1,262 households, and 861 families residing in the CDP. The population density was 483.6 people per square mile (186.8/km²). There were 1,848 housing units at an average density of 334.1/sq mi (129.0/km²). The racial makeup of the CDP was 98.65% White, 0.37% African American, 0.26% Native American, 0.11% Asian, 0.07% from other races, and 0.52% from two or more races. Hispanic or Latino of any race were 1.35% of the population.
There were 1,262 households out of which 18.1% had children under the age of 18 living with them, 58.3% were married couples living together, 7.8% had a female householder with no husband present, and 31.7% were non-families. 29.5% of all households were made up of individuals and 14.3% had someone living alone who was 65 years of age or older. The average household size was 2.12 and the average family size was 2.57.
In the CDP the population was spread out with 16.2% under the age of 18, 5.7% from 18 to 24, 20.6% from 25 to 44, 29.4% from 45 to 64, and 28.1% who were 65 years of age or older. The median age was 50 years. For every 100 females there were 86.7 males. For every 100 females age 18 and over, there were 82.1 males.
The median income for a household in the CDP was $46,932, and the median income for a family was $54,444. Males had a median income of $38,224 versus $29,219 for females. The per capita income for the CDP was $23,031. About 4.2% of families and 8.7% of the population were below the poverty line, including 17.9% of those under age 18 and 3.0% of those age 65 or over.
The grocery stores of Lake Junaluska are dry.