The first white settler in what became Farmington Township was a Quaker from Farmington, New York, named Arthur Power. He purchased land in 1823 and returned in 1824 with a group of families and associates to clear the land. The settlement became known as Quakertown. A post office was established in February 1826 with the name of Farmington. The original post office is still standing today, and is a designated historical site. The township of Farmington was organized in 1827, and the settlement was incorporated as the village of Farmington in the winter of 1866–67. A fire on October 9, 1872, destroyed many buildings in the village center. Farmington was incorporated as a city in 1926.

A small settlement was also developed in Clarenceville, in the extreme southeast corner of the township on the boundary with Livonia in Wayne County. Stephen Jennings built a tavern and a general store to accommodate travelers on the plank road between Detroit and Howell. The name remains in the Clarenceville School District. Even though the school buildings for Clarenceville are in Livonia in Wayne County, the school district serves a portion of Farmington Hills.

In 1839, a post office named East Farmington was opened, but it closed in 1842.

In 1847, a post office named North Farmington was established a mile south of the township line as Wolcott's Corners. After the death of postmaster Chauncey D. Walcott in 1865, the office moved to the township line in the northeast quarter of section 4 (near the intersection of 14 Mile Road and Farmington Road). The post office functioned until September 1902.

Before the remainder of Farmington Township was incorporated as the city of Farmington Hills, there were two other incorporated entities within its boundaries. The first began as a subdivision named Quaker Valley Farms that was incorporated as the village of Quakertown in 1959. The other was Wood Creek Farms, developed in 1937 as a subdivision by George Wellington of Franklin, who named it after a New England estate. It was incorporated as a village in 1957. The villages, together with the remainder of Farmington Township, were incorporated into the City of Farmington Hills in 1973. The City grew rapidly throughout the mid-20th century.

According to the United States Census Bureau, the city has a total area of 33.31 square miles (86.27 km), of which 33.28 square miles (86.19 km) is land and 0.03 square miles (0.08 km) is water. Farmington Hills is bordered by West Bloomfield to the north, Franklin and Southfield to the east, Livonia to the south, and Novi to the west.

According to a 2015 estimate, the median income for a household in the city was $93,274, and the median income for a family was $198,136. Males had a median income of $61,757 versus $39,540 for females. The per capita income for the city was $36,134. Farmington Hills is well known for its luxury estates, its rolling hills, and is also listed on Forbes as one of the most prosperous suburbs in the US, with a household net worth of $725,120. About 2.4% of families and 4.1% of the population were below the poverty line, including 3.2% of those under age 18 and 7.6% of those age 65 or over.

As of the census of 2020, there were 83,986 people residing in the city, and 33,972 households. The population density was 2,396.0 inhabitants per square mile (925.1/km). The racial makeup (including Hispanics in the racial categories) of the city was 62.7% White, 19.9% Black or African American, 0.4% Native American, 14.1% Asian, and 2.4% from two or more races. Hispanic or Latino of any race were 2.3% of the population.

As of the census of 2010, there were 79,740 people, 33,559 households, and 21,412 families residing in the city. The population density was 2,396.0 inhabitants per square mile (925.1/km). There were 36,178 housing units at an average density of 1,087.1 per square mile (419.7/km). The racial makeup of the city was 69.7% White, 17.4% African American, 0.2% Native American, 10.1% Asian, 0.4% from other races, and 2.2% from two or more races. Hispanic or Latino of any race were 1.9% of the population.

There were 33,559 households, of which 29.1% had children under the age of 18 living with them, 50.7% were married couples living together, 9.9% had a female householder with no husband present, 3.2% had a male householder with no wife present, and 36.2% were non-families. 31.5% of all households were made up of individuals, and 12% had someone living alone who was 65 years of age or older. The average household size was 2.36 and the average family size was 3.00.

The median age in the city was 42.1 years. 21.5% of residents were under the age of 18; 7.1% were between the ages of 18 and 24; 25.2% were from 25 to 44; 30.2% were from 45 to 64; and 15.9% were 65 years of age or older. The gender makeup of the city was 47.1% male and 52.9% female.

In April 2013, Farmington Hills had the fourth largest Japanese national population in the state of Michigan, at 589.

As of the census of 2000, there were 82,111 people, 33,559 households, and 21,813 families residing in the city. The population density was 2,466.4 inhabitants per square mile (952.3/km). There were 34,858 housing units at an average density of 1,047.0 per square mile (404.2/km). The racial makeup of the city was 82.95% White, 6.94% African American, 0.17% Native American, 7.54% Asian, 0.02% Pacific Islander, 0.46% from other races, and 1.93% from two or more races. Hispanic or Latino of any race were 1.47% of the population. 12.6% were of German, 9.1% Polish, 8.3% Irish, 7.1% English and 5.5% Italian ancestry according to Census 2000.

There were 33,559 households, out of which 29.5% had children under the age of 18 living with them, 56.0% were married couples living together, 6.6% had a female householder with no husband present, and 35.0% were non-families. 29.6% of all households were made up of individuals, and 10.2% had someone living alone who was 65 years of age or older. The average household size was 2.41 and the average family size was 3.04.

In the city, the population was spread out, with 23.1% under the age of 18, 6.7% from 18 to 24, 31.3% from 25 to 44, 24.6% from 45 to 64, and 14.4% who were 65 years of age or older. The median age was 39 years. For every 100 females, there were 93.8 males. For every 100 females age 18 and over, there were 90.2 males.

Almost all of Farmington Hills is located in the Farmington Public Schools district. The district includes eight elementary schools, three middle schools, and one K-8 lottery school, of which all but one are located in Farmington Hills. North Farmington High School, a large traditional high school, and Farmington Central High School, a smaller alternative high school, are located in Farmington Hills, and Farmington High School in neighboring Farmington also serves portions of Farmington Hills. Harrison High School also operated in the city from 1970 until its closure in 2019, after which it was repurposed as a community center, named The Hawk.

Small portions of the city are within the Clarenceville and Walled Lake Consolidated school districts. The city is also home to Oakland Early College, an early college high school administered by the West Bloomfield School District.

The area includes several private schools, including two parochial Catholic schools, Our Lady of Sorrows and St. Fabian, run by the Archdiocese of Detroit. St. Fabian is in Farmington Hills, and Our Lady of Sorrows School is in Farmington. Farmington Hills also includes an all-girls Catholic high school, Mercy High School, one Lutheran school, Concordia Lutheran School/St. Paul's Lutheran Preschool, and Hillel Day School, a non-denominational Jewish day school.

The Orchard Ridge campus of Oakland Community College is located in Farmington Hills, as is the Michigan School of Psychology.

Farmington Hills was also the location for the fictitious University of Farmington, created by the U.S. Immigration and Customs Enforcement's Homeland Security Investigations (HSI) as part of a sting operation.