As of the census of 2003, there were 3,050 people, 815 households, and 705 families residing in the village. The population density was 756.0 
people per square mile (292.0/km²). There were 871 housing units at an average density of 281.8 per square mile (108.8/km²). 

The racial makeup of the village was 96.11% White, 0.77% African American, 0.17% Native American, 1.54% Asian, 0.68% from other races, and 0.73% from two or more races. Hispanic or Latino of any race were 2.35% of the population.

There were 815 households out of which 39.0% had children under the age of 18 living with them, 80.5% were married couples living together, 5.4% had a female householder with no husband present, and 13.4% were non-families. 11.5% of all households were made up of individuals and 4.8% had someone living alone who was 65 years of age or older. The average household size was 2.87 and the average family size was 3.09.
In the village the population was spread out with 27.3% under the age of 18, 4.6% from 18 to 24, 26.2% from 25 to 44, 31.8% from 45 to 64, and 10.1% who were 65 years of age or older. The median age was 41 years. For every 100 females there were 96.2 males. For every 100 females age 18 and over, there were 93.5 males.

The median income for a household in the village was $111,172, and the median income for a family was $116,893. Males had a median income of 
$89,749 versus $40,341 for females. The per capita income for the village was $44,579. About 1.1% of families and 1.7% of the population were below the poverty line, including 3.3% of those under age 18 and 1.5% of those age 65 or over.Lakewood is at the southwestern edge Crystal Lake, Illinois which almost surrounds it and is on the south side of Crystal Lake itself. The town shares a ZIP code, has strong social ties, shares the same school district with the City of Crystal Lake and is effectively part of the same town.