There were 3,020 households out of which 36.0% had children under the age of 18 living with them, 70.9% were married couples living together, 7.1% had a female householder with no husband present, and 18.7% were non-families. 15.1% of all households were made up of individuals and 6.7% had someone living alone who was 65 years of age or older. The average household size was 2.83 and the average family size was 3.16.
In the town the population was spread out with 24.9% under the age of 18, 5.6% from 18 to 24, 30.2% from 25 to 44, 26.1% from 45 to 64, and 13.2% who were 65 years of age or older. The median age was 39 years. For every 100 females there were 95.6 males. For every 100 females age 18 and over, there were 92.9 males.
The median income for a household in the town was $67,560, and the median income for a family was $74,038. Males had a median income of $50,796 versus $35,806 for females. The per capita income for the town was $26,827. About 0.9% of families and 1.0% of the population were below the poverty line, including 0.8% of those under age 18 and 2.0% of those age 65 or over.
| Mayor | Robert (Bob) J. Chatfield (R) (Since 1978) |
| Town Clerk | M. Carrie Anderson (R) |
| Town Treasurer | David L. Young (R) |
| Tax Collector | Diane M. Lauber (R) |
Robert J. Chatfield, the longest serving chief elected official in the state has held the title of mayor in Prospect for 16 terms. Only one elected official has served longer, Sen. George "Doc" Gunther, who is currently serving his 20th and final term.
In 1967, Prospect switched from first selectman to chief administrative officer, and in 1975, began running under the mayoral form of government. Chatfield, a Republican, was elected to that office on Nov. 7, 1977, and became the second mayor of the town, following George Sabo. Since that time, he has been the only mayor many Prospect residents have known.
His most memorable moment in office came when he coined the phrase "The Best Small Town in Connecticut," which has become a favorite among residents. In the late 1990s, Connecticut Magazine named the town one of the worst small towns in the state based on statistics compiled by various agencies. The statement so riled Chatfield, he and several other area chief officials wrote to the magazine supporting Prospect. The day the magazine came out, Chatfield said, he went to a sign company and ordered tags and bumper stickers claiming Prospect as the "Best Small Town in Connecticut." The tags were placed on all town vehicles, and have remained there since.