Caracas, the capital of Venezuela, lies just south of the Caribbean Sea in a rift valley about 1,042 metres (3,418 feet) above sea level. This 16th-century city is by far Venezuela’s most populous. Immigrants from rural Venezuela and from throughout Europe have poured into Caracas, creating a severe housing shortage. Many blocks of old colonial-style homes have been replaced by rows of repetitious modern dwellings. Makeshift shanties continue to spread up the surrounding mountain slopes.