The short version: shared hosting is cheaper and easier, VPS hosting is more powerful and more hands-on. Most sites should start on shared hosting and only move to VPS when there's a specific reason to.
Signs shared hosting is still fine
- Your traffic is under a few thousand visits a day
- Your site loads acceptably fast most of the time
- You don't need custom server software or configurations
- You'd rather not manage server security and updates yourself
Signs it's time to consider VPS
- Your site slows down noticeably during traffic spikes
- You're running an application that needs specific server software
- You need guaranteed resources instead of a shared pool
- You're comfortable with (or willing to pay for) server administration
The middle ground
Before jumping to VPS, it's worth trying a higher shared hosting tier or a managed WordPress plan first — both often solve speed problems at a lower cost and with less complexity than a full VPS migration.
If you do decide you need VPS, see our best VPS hosting picks for providers that make the transition easier.