Indian Harbour Beach was founded on June 6, 1955 by W. Lansing Gleason, John H. Neafie and Mr. Louis S. Henry
As of the censusGR2 of 2000, there were 8,152 people, 3,762 households, and 2,381 families residing in the city. The population density was 1,470.8/km² (3,810.1/mi²). There were 4,315 housing units at an average density of 778.5/km² (2,016.7/mi²).
There were 3,762 households out of which 21.9% had children under the age of 18 living with them, 50.8% were married couples living together, 9.5% had a female householder with no husband present, and 36.7% were non-families. 30.6% of all households were made up of individuals and 15.0% had someone living alone who was 65 years of age or older. The average household size was 2.17 and the average family size was 2.69.
In the city the population was spread out with 18.5% under the age of 18, 5.4% from 18 to 24, 23.6% from 25 to 44, 27.5% from 45 to 64, and 24.9% who were 65 years of age or older. The median age was 46 years. For every 100 females there were 90.1 males. For every 100 females age 18 and over, there were 87.0 males.
The median income for a household in the city was $42,889, and the median income for a family was $56,803. Males had a median income of $50,045 versus $29,697 for females. The per capita income for the city was $29,986. About 2.3% of families and 5.5% of the population were below the poverty line, including 4.3% of those under age 18 and 2.2% of those age 65 or over.