SAN FRANCISCO -- San Francisco Mayor Gavin Newsom claimed nearly 4,800 homeless people have permanently left the streets or the city's shelters since January of 2004 during his state of the city's homeless address Thursday, but some are saying those numbers are misleading.

The results come just two and a half years into the city's ten-year plan to end chronic homelessness.

The numbers may be impressive to those at City Hall, but to some of those still living on the street they're just that -- a bunch of numbers.

A few individuals who KTVU spoke to Thursday night said that in their eyes they don't see the progress on the street. They just continue to the see crime and a continuing addiction of drugs and alcohol.

"It's increasing. It ain't getting better. People spend all their rent money on drugs, simple as that," said Stefan Hayes, a man who lives on the streets of the Tenderloin. He's just one of the thousands of homeless individuals living in San Francisco.

"I would say to the mayor look into getting more affordable housing. Part of the reason I'm homeless is I'm trying to get into the Tenderloin Housing Program. They want you to stay in a shelter for a month and be on case management for 30 days, but there's no rooms in the shelters," explained Hayes.

At his third annual state of homeless address, Mayor Gavin Newsom said he had good news to pass along.

Since May 2004, San Francisco has placed nearly 2,600 homeless individuals into permanent supportive housing. Since September 2004, the number of people aged 60 and older residing in shelters has declined by 60 percent. Newsom showed his enthusiasm for the results during his address.

"This is what I believe! Soup kitchens solve hunger, shelters solve sleep, but permanent supportive housing solves homelessness," exclaimed Newsom.

The mayor did recognize that there's a chronic substance abuse problem among many of the city's homeless. And he's asking store owners who sell liquor -- starting with those in the Tenderloin -- not to sell alcohol between the hours of six and nine in the morning.

"To open up at 6 a.m. to find someone waiting outside who wants to get a bottle of Nightrain or something like that, who is using their G.A. check, I don't think that is right. It's like saying here's a revolver, here's a couple bullets. Here you go," said Newsom.

All of the Tenderloin liquor stores KTVU entered Thursday night declined to comment on the issue, but a couple people on the street did.

"If the liquor stores didn't sell liquor in the morning, you wouldn't see the majority of these people out here in the morning doing what they are doing," said one local.

Mayor Newsom said is happy with the progress. But he also said he would like to be here another four years to accomplish even more, hinting that he'll probably run for re-election next year