Tolkien never specified about their creation

However people have theorized they're children of Varda.

Hobbits are a sub-race of Men. It is mentioned by Tolkien in the prefatory note to The Hobbit and a few of Tolkien's letters.

Both unspecified origin and probable descendance from Men is likely. I don'y think Tolkien definitively said Hobbits descend from Men. It looks like he suggested it.

For all we know Eru plopped them into Middle-earth after finding Men boring.

Tolkien did deliberately state at one point that Hobbits were Men.

^ Could you give the citation? I've read the letter Tolkien wrote about Hobbits and he doesn't say that definitively. I also didn't see anything like that in the LotR Prologue concerning Hobbits.

I like to imagine in my own head that a female Dwarf and one of the Edain fell in love secretly back in the first age and eventually had a child which would’ve been the first Hobbit, basically a fusion of both. But that’s just me ¯\_(ツ)_/¯

It's like the Druedain, while they resemble Dwarves in many ways, or even orcs at times, they are very much men, or at least close relatives of modern men. Why they are so different is because I like to think they were the first and most ancient of all men, proto-humans or stem-humans if you will. Their Tolkien's mystical, naturalistic and noble Neanderthals! In early drafts of the First Age it was even mentioned that men awoke between the stirring of the Elves and the Battle of the Powers, so between YT 1050-1100. In Gilfanon's Tale from the Book of Lost Tales, it was said a curious Dark Elf (Avari) named Nuin came across what would be Hildorien (then called Murmenelda, or the Slumbrous Dale), and accidentally stumbled over sleeping beings before the rising of the sun. They stirred and awoke to become the first pair of men. If this was canon in some way, I could see the Druedain being ancient mannish beings or ancestral mortals from Hildorien who were awoken thousands of years before the rising of the sun and the awakening of other men. Thus they were not fully developed, being shorter, less beautiful (according to the elves), shorter-lived, technologically primitive, low in population and lived in the untamed wilds, but were still worthy beings in tune with nature, were wise, skilled in magic, had great physical strength and acute senses, were uncorrupted and enemies of the shadow, and were supporters of those in need.

I had thought that there was probably some specific place where tolkien wrote about them which I didn't read (I mean technically I never read the letters mentioned above either)🤔

But I suppose it is possible that it was simply overlooked or skimmed over very briefly somewhere...

To quote Futurama: “That’s just a hobo and a rabbit. But they’re making a hobbit.”

^lollllll