Sleepy Hollow was founded in 1950 by Floyd Falese. Various streets in the village are named after characters in Washington Irving's The Legend of Sleepy Hollow, including Headless Horseman Drive, Ichabod Crane Drive, and Beau Brommel Drive.
As of the census of 2000, there are 3,553 people, 1,185 households, and 1,026 families residing in the village. The population density is 682.5/km² (1,766.3/mi²). There are 1,207 housing units at an average density of 231.9/km² (600.1/mi²). The racial makeup of the village is 93.33% White, 0.65% African American, 0.06% Native American, 2.17% Asian, 0.03% Pacific Islander, 1.77% from other races, and 2.00% from two or more races. 3.77% of the population are Hispanic or Latino of any race.
There are 1,185 households out of which 45.7% have children under the age of 18 living with them, 78.8% are married couples living together, 5.7% have a female householder with no husband present, and 13.4% are non-families. 10.0% of all households are made up of individuals and 2.3% have someone living alone who is 65 years of age or older. The average household size is 3.00 and the average family size is 3.22.
In the village the population is spread out with 30.5% under the age of 18, 5.5% from 18 to 24, 28.6% from 25 to 44, 28.6% from 45 to 64, and 6.8% who are 65 years of age or older. The median age is 38 years. For every 100 females there are 102.6 males. For every 100 females age 18 and over, there are 99.1 males.
The median income for a household in the village is $91,279, and the median income for a family is $93,629. Males have a median income of $67,379 versus $40,260 for females. The per capita income for the village is $31,005. 1.8% of the population and 1.5% of families are below the poverty line. Out of the total people living in poverty, 1.2% are under the age of 18 and 4.8% are 65 or older.