The neighbour's front wall was destroyed in the crash which happened in the Penn area of Wolverhampton at around 1.30am on Sunday
A vehicle was driven into a car on the driveway which was then shunted into the sitting room wall.
Specialist firefighters had to be sent to the scene on Warstones Road to make the building safe.
A man in his 40s was arrested on suspicion of criminal damage and taking a vehicle without consent.
A spokesman for West Midlands Police said: "A man was arrested during a domestic disorder in Warstones Road, Wolverhampton in the early hours of Sunday morning.
"We attended to find property being thrown from a window.
"A vehicle was also driven at a car on a neighbouring driveway which led to it being shunted into the ground floor building damaging the brickwork.
"A man in his 40s was arrested on suspicion of criminal damage and taking a vehicle without the owner's consent.
"He was questioned and released on bail pending more enquiries."