The rising cost of rent might be lowering hopes for renters saving to buy a home.

A new report from Harvard University’s Joint Center for Housing Studies shows the number of so-called “cost-burdened households,” or those using more than 30 percent of their income to pay rent, is near record highs.

Since 2004, the number of new rental households has risen by 770,000 annually, according to the report. Last year alone, rent was double the cost of inflation, climbing 3.2 percent.

The report also showed many people living in rentals are former homeowners who lost their homes and are still unable to qualify for credit to buy a home again, prolonging their rental experience.

Happening concurrently with the rising rate of rent and renters is sliding homeownership. The rate has dropped to a little under 64 percent in the first quarter of this year from 69 percent in 2004, according to the study.

The drop is said to be one of the fastest in home ownership, especially among people in their late 30s to early 50s who were in their prime years for homebuying before the housing market bubble began to collapse in 2006.

It might be a little challenging for renters trying to move into homeownership right now but economists believe things are looking up.

Pointing to the current low interest rates and growth in the economy, many believe homebuying will continue with each passing year.

Join Realtor Diane Brennan for That Real Estate Show Sundays at 8 a.m. on KTAR News 92.3 FM.