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As of the census of 2000, there are 9,189 people, 3,525 households, and 2,432 families residing in the city. The population density is 728.5/km² (1,886.6/mi²). There are 3,851 housing units at an average density of 305.3/km² (790.6/mi²). The racial makeup of the city is 92.56% White, 0.30% African American, 0.96% Native American, 0.42% Asian, 0.02% Pacific Islander, 3.84% from other races, and 1.89% from two or more races. 10.80% of the population are Hispanic or Latino of any race.
There are 3,525 households out of which 38.3% have children under the age of 18 living with them, 54.3% are married couples living together, 9.6% have a female householder with no husband present, and 31.0% are non-families. 25.9% of all households are made up of individuals and 8.9% have someone living alone who is 65 years of age or older. The average household size is 2.53 and the average family size is 3.05.
In the city the population is spread out with 28.5% under the age of 18, 9.6% from 18 to 24, 30.1% from 25 to 44, 21.9% from 45 to 64, and 9.9% who are 65 years of age or older. The median age is 34 years. For every 100 females there are 106.3 males. For every 100 females age 18 and over, there are 103.4 males.
The median income for a household in the city is $41,091, and the median income for a family is $45,504. Males have a median income of $38,038 versus $21,806 for females. The per capita income for the city is $18,140. 8.6% of the population and 6.9% of families are below the poverty line. Out of the total people living in poverty, 10.5% are under the age of 18 and 6.5% are 65 or older.
Craig, named for Rev. Bayard Craig in 1889, was incorporated as a city on April 24, 1908. Craig became the county seat when Moffat County was created out of the western portion of Routt County on February 27, 1911. In the same area as Craig, at the confluence of the Yampa River (then known as the Bear River) and Fortificaton Creek, were previous towns known as Yampa (as early as 1885) and Windsor (as early as 1878). In 1878 the area consisted of a number of ranches and at least two businesses: Himley’s Ford (which allowed crossing of the Yampa River) and Peck's Store (a one room trading post).