Aule made the Dwarves. Since Aule loved creating and building things it is natural that he would pass on his love of building to the Dwarves. In the Silmarillion I believe it says the dwarves became the greatest craftsmen in Middle Earth. They would naturally want display their craftmanship to other races, and to themselves.
Another thing is that contrary to what it may seem like, the dwarves loved things of beauty. Gimli was struck in awe of galadriels beauty, and they loved Thingols Silmaril so much that they destroyed Doriath for it. I think it was a natural evolution for them to beautify their dwellings.
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