The front of the bungalow in Princess Drive was demolished when the car careered into it at around 8pm on Monday.
The driver, a 67-year-old man, was taken to Royal Shrewsbury Hospital with non-life threatening injuries, while elderly woman who lives at the property escaped injury.
West Mercia Police has now confirmed the driver has been arrested on suspicion of drink driving.
One witness described the scene of carnage after the car crashed.
"The car was so far into the house it was ridiculous," they said. "It had ploughed straight through it, it was quite scary really."
Four fire crews attended the scene, along with West Midlands Ambulance Service.
A spokesperson for the ambulance service said: “We were called at 8.10pm to reports of a road traffic collision involving a car that had collided with a building on Princess Drive, Bridgnorth. One ambulance and a paramedic officer attended the scene.
"On arrival, we discovered two patients. The first, a man, the driver of the car, was assessed at the scene and had sustained non-life threatening injuries and was conveyed to Royal Shrewsbury Hospital for further treatment. A woman, who was in the building was also assessed at the scene, she was discharged on scene with self care advice. ”