Final answer:
Hoyt's theory of real estate cycles was flawed because he only studied the real estate market in Chicago and did not trace the data back far enough. Additionally, perfect business cycles do not exist.
Step-by-step explanation:
Hoyt's theory of real estate cycles was flawed because he only studied the real estate market in Chicago, which limited the generalizability of his findings. Real estate cycles can vary across different regions and markets, so studying only one market may not provide a comprehensive understanding of the phenomenon.
In addition, Hoyt's theory did not trace the data back far enough to capture longer-lasting cycles. Reoccurring cycles in real estate can last longer than 18 years, and by not considering this longer timeframe, Hoyt's theory was incomplete.
Furthermore, it is important to note that perfect business cycles don't exist. Economic fluctuations and market dynamics are influenced by various factors, and it is unrealistic to expect a perfectly predictable pattern in real estate cycles.