Palm Terrace, a neighborhood in Gainesville, Florida, exhibits a demographic profile characterized as a "Transitional Community" with "Moderate Diversity" as of 2022. The neighborhood has a population of 238 residents, with a racial composition of 57% white, 21% Hispanic, and 15% Black. The current median income is $39,964, which is lower than in previous years. Palm Terrace's proximity to the University of Florida likely influences its demographic and economic dynamics.

Over the past decade, Palm Terrace has undergone a transformation in its racial composition. In 2013, the neighborhood had "Low Diversity" with a predominantly white population (93%). By 2022, it evolved into a "Moderate Diversity" community with a "Transitional" character. The Hispanic population increased from 2% in 2013 to 21% in 2022, while the Black population grew from no representation to 15%. This shift indicates a trend towards increasing diversity.

The economic landscape of Palm Terrace has experienced volatility over the past decade. The median income peaked at $85,661 in 2013 but declined to $39,964 in 2022. This downward trend in income correlates with the increasing diversity of the neighborhood. The years of highest diversity (2021-2022) coincide with lower median income figures. The population has remained relatively stable, fluctuating between 176 and 270 residents.