Looked into this. Cities generate more undead than other regions due to higher density of peasants per square mileage. So higher population cities get even more than lower population cities. Now that it's brought up, I think its been this way...for as long as I can remember playing BattleMaster?
Most undead units spawned in a region in the last month (top 25 regions):
Wudenkin 14
Rines 12
Reeds 8
Fronepu 7
Firbalt 7
Gethsemene 6
Vozzessdor 6
Ete City 5
Keffa 5
Unger 5
Fheuvenem 5
Weghie 4
Creasur 4
Ossmat 4
Hep Monga 4
Fikman 4
Athol Margos 4
Aesh 3
Yermon 3
Brovyl 3
Lopa 3
Jidington 3
Eykfar 3
Iato 3
Pomatim 3
Monsters BT:
Luhgrethen 8
Watersdown 7
Pellan 7
Coness 7
Binoaramet 7
Affkat 7
Kraake 7
Jedinchel 6
Rolbury 6
Ren Madragas 6
Midbote 6
Bym 6
Bil Havil 6
Pahk 6
Zisswii 6
Zdenka 6
Mekoter 6
Mouzl 6
Ukh 6
Ypsilanti 6
Jaekind 6
Yokk 6
Thromegor 5
Qual 5
Droxago 5
Undead DWI:
Giask 3
Nifelheim 3
Springdale 3
Port Nebel 2
Port Raviel 2
Fissoa 2
Donghaiwei 2
Darfix 2
Aegir 2
Sallowtown 2
Libidizedd 2
Gelene 2
Shuberstone 1
Duil 1
Koshtlom 1
Uppervia 1
Tamirak 1
Flowrestown 1
Yggdramir 1
Mellifera 1
Palm Sea 1
Askileon 1
Irvington 1
Mattan Dews 1
Farrowfield 1
Monsters DWI:
Palm Sea 4
Smokey Hills 4
Underroot 4
Desert of Silhouettes 4
Lowervia 4
Corridor of Torment 4
Evenfell 4
Grympen Mire 4
Moon Bay 3
Cold Spring 3
Larur 3
Fatmilak 3
Tower Fatmilak 3
Ruins of Walfurgisnacht 3
Inklen 3
Tofino 3
Faithill 3
Stratford 3
Rettlewood 3
Mech Calen 3
Mistight 3
Tubrel 3
Raden 3
Asurbanipal 3
Mountain of Woe 3