Bilbo Baggins lives in the Shire in J.R.R. Tolkien’s The Hobbit.
The Shire is a peaceful, mostly rural region in northwestern Middle-earth inhabited by Hobbits. Bilbo’s home is Bag End, a comfortable smial built into a hill in Hobbiton. His quiet life changes when Gandalf and Thorin Oakenshield’s company arrive and recruit him for the journey to the Lonely Mountain.
The Shire represents the familiar domestic world that contrasts with the dangers beyond its borders. It appears in both The Hobbit and The Lord of the Rings, and Frodo later leaves Bag End from the same community to carry the One Ring away from danger.
The Shire is sometimes confused with Hobbiton. Hobbiton is a settlement within the Shire, whereas the Shire is the larger region. Bree is another settlement outside the Shire, and Gondor is a human kingdom far to the south.