As of the census of 2000, there were 5,067 people, 1,874 households, and 886 families residing in the borough. The population density was 3,191.4 people per square mile (1,230.4/km²). There were 1,940 housing units at an average density of 1,221.9/sq mi (471.1/km²). The racial makeup of the borough was 97.00% White, 0.99% African American, 0.10% Native American, 0.89% Asian, 0.53% from other races, and 0.49% from two or more races. Hispanic or Latino of any race were 0.97% of the population. Historically there is a large Pennsylvania Dutch population.
There are 1,874 households out of which 18.7% have children under the age of 18 living with them, 37.6% were married couples living together, 7.1% have a female householder with no husband present, and 52.7% were non-families. 26.7% of all households were made up of individuals and 13.2% had someone living alone who was 65 years of age or older. The average household size was 2.49 and the average family size is 2.80.
In the borough the population was spread out with 12.4% under the age of 18, 38.7% from 18 to 24, 19.0% from 25 to 44, 13.8% from 45 to 64, and 16.2% who are 65 years of age or older. The median age is 24 years. For every 100 females there were 91.4 males. For every 100 females age 18 and over, there were 89.3 males.
The median income for a household in the borough was $35,677, and the median income for a family is $49,653. Males had a median income of $33,438 versus $28,669 for females. The per capita income for the borough was $18,803. About 3.8% of families and 29.4% of the population were below the poverty line, including 6.6% of those under age 18 and 5.7% of those age 65 or over.
Ethnicities in Kutztown: Caucasian (96.6%) Black (1.0%) Hispanic (1.0%) Other race (0.5%) Ancestries: German (91.6%), Irish (11.8%), Italian (8.1%), English (6.0%), Polish (5.7%).