It's actually happening already. It would be a smart idea to buy property in Newark and the surrounding area now. I think jersey city and Hoboken pretty much are just taking advantage of what's going on in new York. I think what's going on in Newark is the same thing except they are dead serious about cleaning that city up.
All the peices are right in front of everyone's face too:
"Every other city close in proximity to NYC is already insanely overpriced.And there's only one city left that has direct rail access to NYC?"

And The last PATH train station that offfers direct access to NYC is right there in the city?

"There's a ton of cheap dilapidated housing there that ma easily obtainable?"
Why wouldn't it get gentrified? The only thing stopping it is that there's a bunch of people there that won't or can't move. You can't make them move so you price them out. Newark is full of bums on government assistance and high earning professionals who are trying not to get completely robbed on rent. There's no middle ground. Something's got to give. I make 90k a year and work in NYC but when I walk down the street in Jersey it's worse than Englewood in Chicago, which is ludicrous considering my rent here is $1,200/month. My apartment would be $600/month in Chicago. People don't like making good money to live around bums and gangbangers, but the only other option is to hand over ALL your money in rent in New York, which lost its allure in the early 2000's at the latest. It's living solely off reputation at this point.