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Hosting will depend on what you are putting up and how much traffic you are garnering. I share a hosting package with a friend and given that our sites are just friends/family sites we are able to go with a low price hosting plan which gives us pletnty of space.
Just be weary of the ultra-cheap hosting plans. Watch to make sure you have enough storage and there is no (or a high) cap on the number of data that can be exchanged in a given day. My hosting site has a cap which is fine for our needs, but probably wouldn't be great if any of our sites took off. (is use 1and1.com).
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