A new analysis by digital homeownership platform Knock has found that as the nation's double-digit home price appreciation has pushed homeowners’ equity to record highs, it is not necessarily good news for all homeowners. While the nation's recent home price has boosted homeowners struggling with underwater mortgages, for others, the housing boom fueled by low rates and the pandemic have resulted in higher tax burdens. Knock’s analysis focused on the impact of home price appreciation, unemployment rates, debt-to-income ratios, income inequality, and the length of the foreclosure process on real estate-owned (REO) transactions, found that those already struggling to meet their mortgage payments are at the greatest risk of losing their home to foreclosure as property taxes rise. "Home price appreciation has become a double-edged sword," said Knock Co-Founder and CEO Sean Black. "Until recently, lack of home price appreciation has been attributed to underwater mortgages and high foreclosure rates, but in 2021 upticks in foreclosures are more a result of rising home values pushing at-risk homeowners over the edge with increased tax burden. Going forward, property tax increases may exacerbate foreclosure rates in states where unemployment, income inequality and debt-to-income ratios are prevalent."