As of the census of 2000, there were 3,569 people, 1,607 households, and 843 families residing in the borough. The population density was 6,281.6 people per square mile (2,417.5/km²). There were 2,071 housing units at an average density of 3,645.0/sq mi (1,402.8/km²). The racial makeup of the borough was 42.64% White, 51.30% African American, 0.25% Native American, 2.83% Asian, 0.03% Pacific Islander, 0.22% from other races, and 2.72% from two or more races. Hispanic or Latino of any race were 0.62% of the population.
There were 1,607 households out of which 24.4% had children under the age of 18 living with them, 23.3% were married couples living together, 24.4% had a female householder with no husband present, and 47.5% were non-families. 42.5% of all households were made up of individuals and 19.4% had someone living alone who was 65 years of age or older. The average household size was 2.16 and the average family size was 2.99.
In the borough the population was spread out with 24.2% under the age of 18, 8.0% from 18 to 24, 25.1% from 25 to 44, 23.8% from 45 to 64, and 18.9% who were 65 years of age or older. The median age was 40 years. For every 100 females there were 80.1 males. For every 100 females age 18 and over, there were 75.1 males.
The median income for a household in the borough was $16,603, and the median income for a family was $28,314. Males had a median income of $25,500 versus $21,559 for females. The per capita income for the borough was $12,690. About 23.0% of families and 26.6% of the population were below the poverty line, including 31.0% of those under age 18 and 16.8% of those age 65 or over.
An important state route, Pennsylvania Route 837, runs through Homestead. Interstate 376 is only a few miles away from Homestead. For public transit, the Port Authority of Allegheny County has several bus routes running through Homestead that go to downtown Pittsburgh and to McKeesport.
Homestead is served by three railroads: the Norfolk Southern, CSX Transportation and the Union Railroad. All three used to have large operations when the Homestead steel mill was open. Now that the mill has closed only one company, WMELCo, is served by the railroad. The Union Railroad had a large yard to serve the plant, which is now Waterfront Drive.