As of the censusGR2 of 2000, there were 3,262 people, 1,791 households, and 929 families residing in the town. The population density was 906.1/km² (2,339.2/mi²). There were 2,603 housing units at an average density of 723.0/km² (1,866.6/mi²).
There were 1,791 households out of which 9.1% had children under the age of 18 living with them, 47.8% were married couples living together, 3.0% had a female householder with no husband present, and 48.1% were non-families. 42.9% of all households were made up of individuals and 25.5% had someone living alone who was 65 years of age or older. The average household size was 1.80 and the average family size was 2.42.
In the town the population was spread out with 10.1% under the age of 18, 2.3% from 18 to 24, 16.2% from 25 to 44, 28.8% from 45 to 64, and 42.6% who were 65 years of age or older. The median age was 60 years. For every 100 females there were 84.9 males. For every 100 females age 18 and over, there were 79.7 males.
The median income for a household in the town was $55,263, and the median income for a family was $68,382. Males had a median income of $50,545 versus $36,842 for females. The per capita income for the town was $50,344. About 3.9% of families and 4.5% of the population were below the poverty line, including 5.7% of those under age 18 and 2.7% of those age 65 or over.