NEW YORK, NY December 23, 2008 —At the end of November the number had risen to nearly 10,000.

The Coalition for the Homeless, a local advocacy group, says the number of new families showing up each month started to increase about five months ago, and now it's the highest it's been in 25 years.

Natasha Mitchell and her boyfriend arrived at a Bronx intake center today seeking help.

MITCHELL: It's hard for us to find a job right now. My baby's father just got laid off cuz it's not enough it was just a seasonal job or whatever and we had no way to pay rent so we had to go. And my daughter will be home soon. She was born a preemie so she had to stay in the hospital but she'll be home soon.

REPORTER: The city says its been able to manage the increase in homeless families.

Advocates warn that potential state budget cuts to homeless programs could seriously compromise a system that's already strained.