NJ isn't a city so I'm fairly confused here.
You do also realize that NYC is about 10-15 miles from Newark. If someone wants to live in NYC that badly, they easily can.
I always forget that NHL rule requiring that players on a team live in the city they play.
Most of the young single players live in Hoboken.. Henrique for example. It's a pretty nice area and a stone's throw from both NYC and Newark. NJ also has some of the most upscale family neighborhoods in the country in Alpine and New Vernon.
These Newark posts are laughable. This is like saying that the Yankees can't sign a player because their stadium sits in the Bronx. Meanwhile, exactly ZERO players live in the Bronx - as they are spread out in Connecticut, Manhattan annnnnnnd - North Jersey! From Bergen county (Tino Martinez, Don Mattingly etc) to the Edgewater stretch of waterfront facing NYC (Large mahority of team - notable in recent years including Cano, Chamberlain etc) and as you said Hoboken which is right there and one of the most popular places in America for affluent YOUNG professionals.
Further, the Devils facility IN Newark is one of, if not the best setup for players in the NHL. They are, I believe the only team in the league with their entire operation under one roof, with their offices, practice facility and game arena all at Prudential Center. No commuting, having different lockers etc. This ranges from mild annoyance for the Rangers to severe player deterrants in Brooklyn, where the commute between the teams facility (and most players residence) and game arena is a nightmare.
And its within 20 minutes of Manhattan, Hoboken and as stated incredible suburbs and school districts.
Further, the Devils offer a relatively PEACEFUL existence (if that's what you're looking for - not every player is). Brodeur, Stevens, Elias, Cammalieri and even Doug Gilmour I recall commenting on this. The Devils have always fostered a very professional and winning environment without the hassle of the big-market frenzy that some players dread. I'm sure an attention seeker like "King" Henrik would not want this but many would be attracted to 1 (if we're lucky) beat writer and the ability to go to the mall with your family and be - relatively - left in peace.