According to The Daily Iowan, University Heights has a reputation among area motorists as a speed trap. However, a more recent analysis of traffic charges in Iowa by The Gazette contends that this is not the case.
In the early 1920s, brothers Lee and George Koser began purchasing and developing the land that became the city of University Heights, anticipating the westward expansion of the University and the city. With the construction of the University's General Hospital in 1928 and Kinnick Stadium in 1929, those predictions came true. By 1933, the City of Iowa City began annexing land on the west side of the river and in 1935, the city of University Heights was incorporated. By the 1960s, most of the remaining lots west of Sunset St. were developed and the land surrounding University Heights had been annexed by Iowa City, limiting future growth.
As of the census of 2000, there were 987 people, 467 households, and 254 families residing in the city. The population density was 3,626.3 people per square mile (1,411.4/km²). There were 477 housing units at an average density of 1,752.5/sq mi (682.1/km²). The racial makeup of the city was 95.95% White, 0.91% African American, 1.22% Asian, 0.10% Pacific Islander, 0.41% from other races, and 1.42% from two or more races. Hispanic or Latino of any race were 1.62% of the population.
There were 467 households out of which 22.1% had children under the age of 18 living with them, 46.9% were married couples living together, 4.5% had a female householder with no husband present, and 45.6% were non-families. 35.8% of all households were made up of individuals and 6.9% had someone living alone who was 65 years of age or older. The average household size was 2.11 and the average family size was 2.74.
In the city the population was spread out with 18.1% under the age of 18, 10.7% from 18 to 24, 36.1% from 25 to 44, 22.5% from 45 to 64, and 12.6% who were 65 years of age or older. The median age was 36 years. For every 100 females there were 101.4 males. For every 100 females age 18 and over, there were 97.1 males.
The median income for a household in the city was $48,929, and the median income for a family was $79,044. Males had a median income of $48,542 versus $36,397 for females. The per capita income for the city was $32,484. About 4.6% of families and 11.1% of the population were below the poverty line, including 5.0% of those under age 18 and none of those age 65 or over.