Lee said his house was badly damaged, but fortunately it was insured.
Neighbour Charles Souta was also asleep when he heard a loud bang.
Image 1 of 12: A car ploughed through four Fairy Springs Rd properties in Rotorua before smashing into the side of a house early on Wednesday morning. Photo/ Ben Fraser
"I came out to see what the bang was and the first thing I thought was 'oh s*** the pole'." He said a young woman was lying on the ground with "blood pouring out of her head".
He said firefighters made sure the people in the houses were safe.
A police spokeswoman said the crash, on Fairy Springs Rd, between Cochrane and Kea Sts, was reported at 2.20am.
"Initial reports claimed they heard a loud bang, and it appeared to be a vehicle which had crashed into a building."
Rotorua police crime prevention manager Brendon Keenan said the car had gone up the steps of a neighbouring deck and hit the guttering, clearing a fence before smashing into the house. Senior Sergeant Denis Murphy said the crash could have easily been a fatality for those in the car or the house.