Desegregation is a key policy issue in many countries. I investigate a residential desegregation program in Singapore -the ethnic housing quotas. I show that choice restrictions imposed on apartment blocks above the quota limits (constrained) could have distortionary effects, causing price and quantity differences for constrained versus unconstrained blocks. I test these predictions by hand-matching more than 500,000 names in the phonebook to ethnicities, to calculate ethnic proportions at the apartment block level. I can then investigate differences for constrained and unconstrained blocks close to the quota limits and test for sorting around the limits. I find that price differences are between 3% and 5%. Quantity effects are economically significant, translating to longer time-on-market durations. Selection cannot fully explain these results. My results point to challenges in achieving desegregation using quantity restrictions. Abstract Desegregation is a key policy issue in many countries. I investigate a residential desegregation program in Singapore -the ethnic housing quotas. I show that choice restrictions imposed on apartment blocks above the quota limits (constrained) could have distortionary effects, causing price and quantity differences for constrained versus unconstrained blocks. I test these predictions by hand-matching more than 500,000 names in the phonebook to ethnicities, to calculate ethnic proportions at the apartment block level. I can then investigate differences for constrained and unconstrained blocks close to the quota limits and test for sorting around the limits. I find price differences are between 3% and 5%. Quantity effects are economically significant, translating to longer time-on-market durations by 1 to 1.4 months. Selection cannot fully explain these results. My results point to challenges in achieving desegregation using quantity restrictions. * I wish to thank my advisers Professors Esther Duflo, Amy Finkelstein, Panle Jia and Bill Wheaton for guidance and support. I am also deeply indebted to Professors Peter Diamond, Fernando Ferreira, Michael Greenstone, Joe Gyourko, two anonymous referees and the editor for their helpful comments. I have benefited from conversations with Professor