According to the United States Census Bureau, the city has a total area of 195.9 km² (75.6 mi²). 158.9 km² (61.4 mi²) of it is land and 37.0 km² (14.3 mi²) of it is water. The total area is 18.87% water.
Based on the 2000 census2 for the Valdez-Cordova area, the city has 2454 people, organized into 958 households and 597 families. Like a number of locations in the state, the city is predominately male: for every 100 females there are 119½ males, and for every 100 females age 18 and over, there are 120.4 males.
The population density is 15.4/km² (40.0/mi²). There are 1,099 housing units at an average density of 6.9/km² (17.9/mi²). The racial makeup of the city is 71.11% White, 10.35% Native American, 10.07% Asian, 0.41% Black or African American, 1.34% from other races, and 6.72% from two or more races. 3.06% of the population are Hispanic or Latino of any race.
There are 958 households out of which 36.1% have children under the age of 18 living with them, 49.5% are married couples living together, 8.1% have a female householder with no husband present, and 37.6% are non-families. 30.3% of all households are made up of individuals and 5.4% have someone living alone who is 65 years of age or older. The average household size is 2.48 and the average family size is 3.17.
In the city the population is spread out with 28.0% under the age of 18, 7.1% from 18 to 24, 32.8% from 25 to 44, 25.4% from 45 to 64, and 6.8% who are 65 years of age or older. The median age is 37 years.
The median income for a household in the city is $50,114, and the median income for a family is $65,625. Males have a median income of $40,444 versus $26,985 for females. The per capita income for the city is $25,256. 7.5% of the population and 4.3% of families are below the poverty line. Out of the total people living in poverty, 8.2% are under the age of 18 and 6.2% are 65 or older.