The population of Yacolt City was estimated at 2,500 in the United States census in 2000. It was named after a native American tribe, the Yacolt. The first post office in the area was established in 1876 by Joseph Eaton on his farm, and the name stuck. The Eaton family had no neighbors in the community for 11 years, and the post office must have been run in a leisurely manner. The Garner family, however, homesteaded 160 acres in the city, which muddied the situation, and caused a year-long dispute over the community's name.
As for the country of origin of the Yacolt population, most residents are US citizens, although a very small percentage of the community is non-citizen. The largest group is American Indian. The majority of Yacolt residents are White, but there are also a large proportion of people who are African-American. The majority of residents speak English, but they are also native Norwegians, Germans, and Italians.
The percentage of residents who do not speak English at home is low, with just 0.2% of those who do speaking Spanish. A few residents also speak an Indo-European or Asian language. The unemployment rate in Yacolt, Washington is 3.3%, with 8.6% of residents over 16 in the labor force employed. A staggering nine percent of people in Yacolt work for local, state, or federal government. The median household income in Yacolt is $74,318 per year.