MILWAUKEE, WIS. — Francisco Vazquez purchased a yellow three-bedroom home with a basement, garage and yard in Milwaukee for $220,000, a price nearly half the national median home price. He renovated the property by tearing out carpet, sanding and staining the hardwood floors, and applying polyurethane.

"I sanded down all the hardwood floors, stained them again. I was adding polyurethane today. It's looking really nice." Vazquez said of the work.

To afford the purchase, Vazquez saved about 70% of his paycheck for two years and invested those savings in a broad index stock fund, accumulating $72,000 in just over two years. He had taken a fast-food management job that included pay and benefits, and has received two promotions in that role. "I wasn't going to be able to support a wife, let alone kids, or buy a home." Vazquez said of his earlier circumstances.

Gen Z homebuyers now outpace millennials in the share of first-time buyers at the same age, even as the average age of first-time homebuyers has climbed to 40 years, according to the National Association of Realtors. Gen Z buyers made up 4% of homebuyers last year, up from 3% the previous year, with an average household income of $76,000. Milwaukee and Pittsburgh are among smaller, more affordable cities where Gen Z buyers are more likely to purchase homes.

Compared with millennials at the same age, Gen Z buyers are less likely to receive financial help from parents, and the share of single Gen Z homebuyers is double that of millennials. More than a third of Gen Z homebuyers in their 20s are single women, the highest share among all generations. Gen Z buyers are also more likely to tap a 401(k) for home purchases compared to previous generations.

"Gen Zers seem to have learned from millennials. They're embracing the knowledge that is at hand," said Jessica Lautz, deputy chief economist at the National Association of Realtors. "They're taking advantage of government [down-payment assistance] programs at higher rates than all other generations."

Sue Meitner, president of Centennial Lending Group, noted the rise in single women buyers. "Women weren't even allowed to own a house until not too long ago," she said. Describing her firm's approach to applicants, she added: "We don't ever want to say no. We always want to say maybe later, like, what can we do to get your income higher?"