I attempted this but it will not according to Heavenfall. I know about the upgrading goodie hut thing and I think its a great idea to coincide with the spawn new lair would be an incredible way to spread monster factions. My only other idea to go with this would be to set it up that monsters get 1xp per turn in addition to also attacking each other of different types. Beasts attack non beasts, trolls attack ogres, things like this so that in an area only one sub monster type is present but then they spawn new lairs making that area dense with that type of monsters.
Let me lay out an example.
Wolf lair.
Spawns two wolf patrols but they have a short patrol range say 3. Each wolf patrol after a level up within the game through xp or through the turn timer for increasing monsters levels occurs first. The patrol is consumed and they create new wolf lairs. Now at the same timeframe that the original wolf patrols level and spawn a new lair the original lair upgrades to a great wolf lair and no longer spawns new patrols. Only the newly created wolf lairs would spawn new patrols. Eventually the new lairs would upgrade to a great wolf lair as well, when the time comes for the new spawned lairs upgrade the original lair then upgrades into its final form of some new lair, the greatest wolf lair or something. This makes it that after a long time you have what I described above, mini kingdoms fo monsters without having to make monster factions and making all the things associated with it.