live in New York City

How long will it take before the real estate market bottoms out enough for someone like me to be able to afford New York City? I live and work in the shadow of the city, but I cannot get there. I need a bigger income.

So three of my buddies and I are going to start looking for a place in the Williamsburg area starting in January. This could be it, but it really depends on me finding a job in NYC in my field that pays a somewhat decent wage. Next would be finding a place we can all afford (2-3k a month for a four bedroom in Williamsburg/Greenpoint area?). Is this possible? It’s time for me to start updating the resume.

This goal is kind of on hiatus until I have enough experience in my field (journalism) to get a job in New York that pays me enough to live there. The journalism jobs in New York seem to be intended for people with 5 years of experience or they are part-time, temporary or internship positions. I have a full-time gig in Jersey that suits me for now, but I’m still clinging to my big city dreams.

I got a job in Rutherford, New Jersey (a straight shot from the Lincoln Tunnel and not far from the GWB) and I want to move to New York. My salary is laughable and I’m looking to spend about $650/month on rent. Mind you, I do have potential roommates. A 3br for $1900 or a 4br for $2600 would work perfectly.
The question is where to live?
I’ve ruled out Hoboken based on price and judging by the few times I’ve been to Jersey City, it didn’t look like it was my style.
I want to live in New York for the social and cultural aspects of being in the city. If I was going to live way out in Jersey, I’d say at my parents house (an hour train ride into Manhattan) until they kick me out.
Now, I figure the Bronx is a bit rugged and Brooklyn and Queens are out of viable commuting distance.
Downtown is overpriced and I realize for the prices listed above can only afford a place at 110th street and above.
Any suggestions? I heard Morningside Heights is a nice area. I’ve heard mixed reviews on Harlem.
I’m not totally opposed to living in a rougher than average neighborhood, but I would like to be in an area where I won’t be completely out of place (as a college grad-slash-scrawny white kid who isn’t fluent in Spanish).
Any suggestions/ideas?

Jobs in my field in the big apple are few and far between. Change fields? Or work in Jersey and do the reverse commute? Do I really want to live in New York? Sometimes I’m not sure, but I’ll leave it up here as a goal.