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Erlanger was founded in the 1880s. The city was named after the Parisian family bank Emile Erlanger & Co. and its founder, Baron Frédéric Émile d'Erlanger, who helped finance the town's early development. In current usage, the name is pronounced in an anglicized way, with neither a French nor German accent. Nearby Elsmere was originally known as "South Erlanger".

As of the 2000 census, there were 16,676 people, 6,597 households, and 4,406 families living in the city. The population density was 2,002.4 people per square mile (772.9/km2). There were 6,865 housing units at an average density of 824.3 per square mile (318.2/km2). The racial makeup of the city was 60% White, 27% African American, 0.02% Native American, 0.04% Asian, 0.02% Pacific Islander, 0.42% from other races, and 1.87% from two or more races. Hispanic or Latino of any race were 10% of the population.

There were 6,597 households, out of which 51.8% had children under the age of 18 living with them, 32.1% were married couples living together, 33.8% had a female householder with no husband present, and 11.1% were non-families. 28.0% of all households were made up of individuals, and 9.3% had someone living alone who was 65 years of age or older. The average household size was 2.50 and the average family size was 4.09.

The age range was 26.4% under the age of 18, 8.7% from 18 to 24, 33.0% from 25 to 44, 20.2% from 45 to 64, and 11.7% who were 65 years of age or older. The median age was 34 years. For every 100 females, there were 92.8 males. For every 100 females age 18 and over, there were 87.8 males.

The median income for a household in the city was $29,835, and the median income for a family was $40,442. Males had a median income of $21,585 versus $19,296 for females. The per capita income for the city was $17,834. About 27.0% of families and 29.8% of the population were below the poverty line, including 42.0% of those under age 18 and 33.6% of those age 65 or over.