Shared hosting is like living in an apartment building where multiple tenants share the same resources, such as space, utilities, and security. In the web hosting world, it means multiple websites are hosted on the same server, sharing its resources like storage, bandwidth, and processing power. It's a cost-effective hosting option, but it's akin to sharing common amenities in an apartment complex. While it's budget-friendly, the performance of your website can be influenced by the activity of other websites on the same server. It's like sharing the building's laundry room; if someone uses all the machines, you may have to wait longer.