Cottonwood is a medium-sized city located in the state of Arizona. With a population of 12,939 people and six associated neighborhoods, Cottonwood is the 50th largest community in Arizona.

Telecommuters are a relatively large percentage of the workforce: 8.36% of people work from home. While this number may seem small overall, as a fraction of the total workforce it is high relative to the nation. These workers are often telecommuters who work in knowledge-based, white-collar professions. For example, Silicon Valley has large numbers of people who telecommute. Other at-home workers may be self-employed people who operate small businesses out of their homes.

The overall education level of Cottonwood is somewhat higher than in the average US city of 21.84%: 27.46% of adults 25 and older in the city have at least a bachelor's degree.

The per capita income in Cottonwood in 2022 was $33,999, which is middle income relative to Arizona and the nation. This equates to an annual income of $135,996 for a family of four. However, Cottonwood contains both very wealthy and poor people as well.

Cottonwood is a very ethnically-diverse city. The people who call Cottonwood home describe themselves as belonging to a variety of racial and ethnic groups. The greatest number of Cottonwood residents report their race to be White, followed by Native American. Cottonwood also has a sizeable Hispanic population (people of Hispanic origin can be of any race). People of Hispanic or Latino origin account for 23.38% of the city’s residents. Important ancestries of people in Cottonwood include German, English, Irish, Italian, and French.

Foreign born people are also an important part of Cottonwood's cultural character, accounting for 15.33% of the city’s population.

The most common language spoken in Cottonwood is English. Other important languages spoken here include Spanish and Polish.