Did God create hell?
The short answer
In a sense, no. Hell is primarily an eternal state of separation from God for angels and humans who have permanently rejected him. God created free will, which is good; hell results from its abuse. God did not create hell — he allowed for its possibility.
A state of separation
Hell is not primarily a physical place but an eternal separation between God and those creatures, angels and humans, who have permanently chosen to reject him.
Free will
God created free will, which is good; hell is the result of its abuse. From this angle, God did not create hell but allowed for its possibility.
Place and evil
The lost, in their risen bodies, would occupy a place, but the place itself would not be evil. The evil is that they have definitively cut themselves off from God, the source of all joy — a self-inflicted suffering.