The vast majority of WordPress users fall into the shared hosting pool. Shared hosting just means that you are sharing space on a server with other customers. Naturally, this saves you tremendous money and time setting up and managing a server. InMotion Hosting, SiteGround, and Bluehost WordPress hosting are among the most popular offerings for this market.
In housing terms, VPS hosting is like renting your own apartment in a larger building. You're much more isolated than in the roommate situation mentioned above; it's still possible that a neighboring apartment could causes annoyance for you, but far less likely. In web hosting terms, Site A's traffic surge won't have nearly as much impact on Site B or Site C. As you'd expect, VPS hosting costs more than shared hosting. You'll pay roughly $20 to $60 per month.