1.67% seems high (NV is 0.87%, CA is about 1%)  Are there area indications that rents will continue to climb because of shortage of supply?

I cannot speak for Smokies, but at least in FL because there is a general housing shortage. 

Labor shortages and increasing material costs are increasing construction costs for fix-and-flip investors.

I'm wondering because of the housing shortage if the federal government is offering some low interest loans for this type of development.

UC has a bedroom shortage and is only growing every year.

Delays can happen due to material shortages, weather conditions, or scheduling conflicts.

Quote from @Devin James: @Jay Hinrichs Developments are definitely BIG money makers, but thats also reflected with the risk associated.That's why these projects take so much time and capital, but if you make the right judgements for project selection, and do all your due diligence, it'll turn out well. my 90 home project in Oregon  started it as dirt before covid .. got 1st phase built then covid hit.. had to fight through lumber sky rocketing and other material shortages and the of course interest rate spikes.. but the project ( and I give credit to my Wife and my GC's attention to detail) has sold Very well for record prices and profits .. its de risked now 22 lots left 13 are presold with big non refundable deposits and only 9 lots left that have no debt..

Quote from @Noah Bacon: In last nights debate, Vice President Harris emphasized housing affordability, addressing the shortage of homes and proposing a plan to increase housing supply by 3 million units.

I have a hard time believing that vacation rentals are adding to the housing shortage in any meaningful way. 

I work in a market with a severe housing shortage.