Property rents rose for a third straight month in December, hitting new record highs in some regions, and supply shortages suggest it could be a difficult year for tenants, Trade Me says.

The national median weekly rent increased by four per cent in December 2020 when compared with December 2019, to sit at $520, according to the latest Trade Me Rental Price Index.

That's the third month of four per cent increases.

'Summer is typically when we see the rental market peak, and last month was no exception,” said Trade Me Property spokesperson Logan Mudge.

'Despite the turbulence and uncertainty COVID-19 presented every part of New Zealand last year, the rental market has continued to remain very strong and we're seeing a lot of growth nationwide since August.”

While supply of rentals increased by 11 per cent, demand was up by 13 per cent, meaning prices didn't cool, he says.

Mudge warns 2021 could be difficult for tenants.

'All the signs are showing that 2021 is going to be a record-breaking year,” he says.

'Supply continues to lag behind demand in most of the country and that's only going to lead to higher prices – particularly as so many leases change early in the New Year and there's always massive demand from students in the first few months as they move around the country.”

Median rents rose in every region in December, with records set in Marlborough ($470), Gisborne ($480) and Wellington ($595).

Auckland's median rent increased 4 per cent to $580, matching an all-time high reached in March and Mudge said he expected that price to be beaten early in the New Year if current trends continued.

Auckland City's median weekly rental held at $550 for the seventh month in a row. The most expensive districts in Auckland were North Shore City ($630), Manukau ($590) and Papakura ($585).

Auckland's most popular rental, a three-bedroom house for $620 a week in Boyce Avenue, Mount Roskill, received 68 inquiries in its first 48 hours.

In Wellington, the most popular rental was a two-bedroom apartment for $465 a week in Curtis St, Karori, which received 91 inquiries in its first 48 hours.

In Wellington city, the average median rent of $620 lagged behind Porirua which hit a record high $635.

'Porirua has become more and more popular with renters this year and it's showing no signs of slowing down,” Mudge says.

'Porirua offers, typically, larger properties for renters, and the commute is less significant for many people now that working from home is more and more of an option for many people.”

Some coastal regions saw demand spike in December, with Nelson/Tasman up 43 per cent, Northland up 39 per cent, Taranaki up 31 per cent, and Bay of Plenty up 31 per cent.

The median weekly rent for townhouses reached a new record high of $565, while apartment rents fell by two per cent to $480.

House rentals increased across the board, except for small one-to-two bedroom properties in Christchurch which recorded no change.

In Wellington, the median weekly rent for a medium three-to-four bedroom house hit a new record of $590.

-Stuff/Tina Morrison.