A Ford Mondeo smashed through the back fence of the house in Whin Meadows, Hartlepool, and damaged a workshop building after the vehicle came off the roundabout in Easington Road on Thursday night.
A 32-year-old man has been arrested on suspicion of drink and drug driving.
It happened at about 8.30pm on July 21 when the occupants were at home.
The resident, who did not wish to be named, said: “I just heard a bang and thought there had been a car accident.
"I went round to have a look at the fence and there was a car there. It damaged the fence and workshop.”
Cleveland Police said: “At around 8.20pm last night, Thursday 21st July, police attended Whin Meadows in Hartlepool where a grey Mondeo was reported to have left the carriageway and gone through a fence and then into a shed at a property there.
“No injuries were reported, the Mondeo was recovered from the scene, and a 32-year-old man was arrested on suspicion of drink and drug driving.
“He was interviewed then released under investigation while inquiries continue.”
The resident has contacted Hartlepool Borough Council to enquire if anything can be put in place to protect the property and pedestrians.
She added: “We have had the same thing with a car come through 14 years ago.
"There is always lots of people walking along there. It could have wiped them out.
"There should be some railings or something to protect them.”