As of the census of 2000, there were 7,173 people, 3,750 households, and 1,829 families residing in the town. The population density was 1,574.7 people per square mile (607.3/km²). There were 26,317 housing units at an average density of 5,777.5/sq mi (2,228.3/km²). The racial makeup of the town was 95.34% White, 2.50% African American, 0.11% Native American, 0.74% Asian, 0.01% Pacific Islander, 0.35% from other races, and 0.95% from two or more races. Hispanic or Latino of any race were 1.24% of the population.
There were 3,750 households out of which 11.6% had children under the age of 18 living with them, 39.2% were married couples living together, 6.4% had a female householder with no husband present, and 51.2% were non-families. 39.1% of all households were made up of individuals and 13.7% had someone living alone who was 65 years of age or older. The average household size was 1.91 and the average family size was 2.47.
In the town the population was spread out with 11.3% under the age of 18, 7.3% from 18 to 24, 28.2% from 25 to 44, 28.0% from 45 to 64, and 25.2% who were 65 years of age or older. The median age was 47 years. For every 100 females there were 105.4 males. For every 100 females age 18 and over, there were 103.6 males.
The median income for a household in the town was $35,772, and the median income for a family was $44,614. Males had a median income of $28,613 versus $27,457 for females. The per capita income for the town was $26,078. About 6.0% of families and 8.4% of the population were below the poverty line, including 23.0% of those under the age of 18 and 3.9% ages 65 or older.
Nearby Wicomico Regional Airport provides air service for Ocean City. Ocean City Municipal Airport, located just 3 miles (4.8 km) west of downtown Ocean City also serves as an alternate option for those with private planes.
Ocean City has only a single major north-south thoroughfare, Maryland Route 528, known as the Coastal Highway for most of its length, and as Philadelphia Avenue at its southern end. MD 528 continues north into Delaware as Delaware Route 1. East-west streets are numbered, starting at Division Street in the south, and continue until 144th street at the Delaware/Maryland border. Locations in the city are usually given as Oceanside (east of Coastal Highway) or Bayside (west of Coastal Highway).
Three bridges connect the spit to the mainland. U.S. Route 50 crosses the southern bridge and connects to MD 528 at Division Street. Maryland Route 90 crosses the northern bridge and connects to MD 528 at 62nd street. Delaware Route 54 can also be used to reach the Ocean City, as it meets the Coastal Highway just north of the border.
Ocean City also has a public transportation system. Off seasons a bus runs along Coastal Highway from Inlet Ocean City to the Delaware line. Called the Inlet To Delaware Line. It runs every 15 minutes from 6am to 10pm and every half hour from 10pm to 6am. The summer season the bus along Coastal highway runs every 5–7 minutes from 6am to 10pm and every 15 minutes from 10pm to 6am. As well as the West Ocean City park and ride shuttle which runs from 6am to 2:30am. During the summer season, Ocean City borrows articulated buses from the Maryland Transit Administration of Baltimore, Maryland, as well as hiring additional operators for the summer season. These seasonal bus drivers are frequently retirees from other transit authorities as well as school bus drivers across the state of Maryland who are off during the summer season while schools are not in session.
The Ocean City Transits fleet consists mainly of Thomas built buses. The CL960 model and the TL960 model both in 40-foot (12 m) lengths. They do run Eldorado National XHF buses in a 35-foot (11 m) length. Off season they run the Inlet to Delaware line and the summer season the West Ocean City Park and ride shuttle. Ocean City did purchase a new order of at least 8 Blue Bird Xcel 102s in a 40-foot (12 m) length this year. They were purchased to replace the oldest set of Thomas built buses on the Ocean City fleet. Which were also numbered as 270s. Ocean City Transit is scheduled to receive somewhere from 10-17 Articulated buses from the Maryland Transit Administration which were built by North American Bus Industries in 1997 as Maryland Transit Administration is receiving 30 new Hybrid Articulated buses built by New Flyer.
Ocean City also maintains a fleet of open-air shuttles which run along the Boardwalk. The shuttles run the entire length of the boardwalk from the Inlet to 27th Street. South of 5th Street, the shuttle has a separate paved road it runs on parallel to the boardwalk. North of this, a painted lane down the middle of the boardwalk warns pedestrians of the shuttle. Passengers board and alight at any point along the route by notifying the driver.