The first home was bulldozed to make room for the South Mountain Loop 202 in the south part of the valley.
The demolition took almost two hours to complete.
The sounds rattled nearby neighbors.
"I'm saying it is the bullies using a bulldozer to effectively stop people from thinking," said Scott Herrmann.
"The place is a ghost town, and there are just a few isolated people who are left, and it's heartbreaking to see those houses torn down," said Sherry Woodring.
The first home being taken down has upset some neighbors.
"It's a sad day for a lot of people, this is a peaceful, quiet neighborhood," said Kerry Alter.
But for progress and in the long run it'll be a good thing, it will relieve a lot of traffic in the city, and it will relieve a lot of traffic on Chandler Blvd. and Ray Road.
"I am not going to move, I don't want to move, if it gets so bad I have to move I guess I have to move, that means the houses will drop in value too because who is going to want to live here?" said Herrmann.
Some neighbors are holding their ground and have not moved or plan to. Others have already moved on to new homes.
The remaining homeowners are staying and working to find a fair market price for their homes that both sides can agree on.
Construction is set to begin next year; the freeway will be finished by 2020.