We propose a method, based on matrix product states, for studying the time evolution of many-body quantum lattice systems under continuous and site-resolved measurement. Both the frequency and the strength of generalized measurements can be varied within our scheme, thus allowing us to explore the corresponding two-dimensional phase diagram. The method is applied to one-dimensional chains of nearest-neighbor interacting hard-core bosons. A transition from an entangling to a disentangling (area-law) phase is found. However, by resolving time-dependent density correlations in the monitored system, we find important differences between different regions at the phase boundary. In particular, we observe a peculiar phenomenon of measurement-induced particle clusterization that takes place only for frequent moderately strong measurements, but not for strong infrequent measurements.
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