As of 2004, there were 8,044 people, 3,300 households, and 1,997 families residing in the City. The population density was 2,348.6/mi² (907.6/km²). There were 3,645 housing units at an average density of 1,080.6/mi² (417.6/km²). The racial makeup of the city was 65.31% White, 0.84% Black or African American, 19.80% Native American, 6.85% Asian, 0.20% Pacific Islander, 0.52% from other races, and 6.68% from two or more races. 3.38% of the population was Hispanic or Latino of any race.

There were 3,300 households out of which 52% had children under the age of 18 living with them, 48.6% were married couples living together, 13.0% had a female householder with no husband present, and 38.4% were non-families. 31.7% of all households were made up of individuals and 7.9% had someone living alone who was 65 years of age or older. The average household size was 2.44 and the average family size was 3.09.

The population is spread out with 22.7% under the age of 18, 8.6% from 18 to 24, 32.95% from 25 to 44, 22.35% from 45 to 64, and 9.3% who were 65 years of age or older. The median age was 42 years. For every 100 females there were 101.93 males. For every 100 females age 18 and over, there were 102.0 males.

15.7% of the population is Alaska Natives. A federally recognized tribe is located in the community. Ketchikan is a diverse community. The largest collection of totem poles in the world is found here at Totem Bight State Historical Park, Saxman Native Village, and the Totem Heritage Center Museum.

The median income for a household in the City was $44,807, and the median income for a family was $52,529. Males had a median income of $41,926 versus $30,411 for females. The per capita income for the city was $22,484. About 4.9% of families and 7.6% of the population were below the poverty line, including 8.3% of those under age 18 and 4.8% of that age 65 or over.