Historically, housing has been a major problem in Hong Kong, where space is limited and the number of occupants ever-growing. Changes in the residential environment between the establishment of the colony in 1842 and the Japanese occupation in 1941 were moderate, compared to those that took place in the postwar years. There was no planning in the earlier days of development, except that generally the British lived on the Peak (the area around Victoria Peak), other nationalities in the Mid-Levels (below the Peak), and the wealthy on somewhat higher ground, where the grand garden houses and large mansions remain as landmarks. Most of the Chinese lived on the lowlands surrounding the harbour, where the streets were narrow and the houses made of wood, bricks, and mortar. The houses lacked not only good natural lighting and ventilation but also piped water and flush toilets.