The purpose of the Homer Hoyt Institute's Capital Flows Research program is to identify and quantify the sources and costs of funds available for real estate investment during various phases of the economic cycle. This research program is part of HHI's continuing effort to gain a better understanding of the system and in order to help improve the quality of decisions. The program addresses the long-term problem that the real estate industry experiences with over and under supplies of capital as the economic environment changes.

These changes in flows of funds have, at times, exacerbated space market imbalances, leading to overbuilding and extreme price volatility. At other times, the changes have led to a devestating shortage of funds. During the real estate debacle of the late 1980s and early 1990s, properties lost approximately 30% of their value on average, while many properties suffered losses of 50% or more. Through research, we can gather data and develop models that will contribute to better results for those who participate in the process and for society as a whole.