It happened around 7 p.m. on Jackson Street in Passaic, where the car left a gaping hole on the first floor of the building.
Passaic police say the white Subaru station wagon was traveling in reverse at the time, and driver fled the scene.
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The car was later recovered in Clifton, but the driver is still at large.
The Red Cross is now assisting 16 people among five families who were displaced after inspectors deemed the structure unsafe.
Ana Negron owns the home and was in her attic apartment at the time.
"I see the wall on the floor, and I think it might be a kid," she said. "I live over there in the attic when I see the boom. My daughter, everybody (was home), second floor, third floor. The lady (on the first floor) no here."
Police have not said what led up to the crash or whether there was criminality involved.
No one inside the home was hurt, though it remains unclear if the driver was injured.
The investigation is active and ongoing.
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