As of the census of 2000, there were 1,729 people, 674 households, and 485 families residing in the community. The population density was 568.5 people per square mile (219.6/km²). There were 725 housing units at an average density of 238.4/sq mi (92.1/km²). The racial makeup of the community was 92.19% White, 2.20% Native American, 0.35% Asian, 0.12% Pacific Islander, 2.95% from other races, and 2.20% from two or more races. Hispanic or Latino of any race were 7.98% of the population.
There were 674 households out of which 31.2% had children under the age of 18 living with them, 58.8% were married couples living together, 9.2% had a female householder with no husband present, and 28.0% were non-families. 21.8% of all households were made up of individuals and 9.8% had someone living alone who was 65 years of age or older. The average household size was 2.57 and the average family size was 3.01.
The population is spread out with 26.5% under the age of 18, 6.7% from 18 to 24, 24.8% from 25 to 44, 25.3% from 45 to 64, and 16.7% who were 65 years of age or older. The median age was 41 years. For every 100 females there were 102.2 males. For every 100 females age 18 and over, there were 94.2 males.
The median income for a household in the community was $42,500, and the median income for a family was $45,625. Males had a median income of $34,516 versus $18,906 for females. The per capita income for the community was $18,514. About 11.7% of families and 15.6% of the population were below the poverty line, including 25.3% of those under age 18 and none of those age 65 or over.
Soulsbyville is named after Ben Soulsby, who resided in the area during the California Gold Rush. Mr. Soulsby ran a lumber mill near the intersection of Community Drive and Soulsbyville Road. His contribution to society is forever embossed in the following elementary school song: "Drop on by, we're up the hill. We're the kids from Soulsbyville. See the town with the old saw mill, we're the kids from soulsbyville. Living here is mighty fine, thanks to Ben Soulsby's old gold mine, come see us, if you will. WE'RE THE KIDS FROM SOULSBYVILLE!".
In January 2007, the visit of a smew, a small diving duck rarely seen in the United States, and only the fourth California state record for the species, brought numerous birders to visit the nearby Willow Springs Pond.
In the state legislature Soulsbyville is located in the 14th Senate District, represented by Republican Dave Cogdill, and in the 25th Assembly District, represented by Republican Tom Berryhill. Federally, Soulsbyville is located in California's 19th congressional district, which has a Cook PVI of R +10 and is represented by Republican George Radanovich.