Urban village redevelopment has multidimensional impacts on resettled households. These impacts can reflect the sustainability of urban village redevelopment. This study empirically compares the gains and losses of the welfare in economic conditions, living conditions, natural environment, psychological conditions, and social security in bottom-up and top-down urban village redevelopment cases in Wuhan, China. The results show that a bottom-up redevelopment mode with participative residents caused negative effects in economic welfare but positive effects on living conditions, natural environment, and psychological condition, thus promoting higher comprehensive welfare and satisfaction. Top-down redevelopment led by the government provides villagers with shared dividends through collective economic reform and thus, contributes to gains in economic conditions and social security. However, top-down redevelopment with less participation of residents leads to welfare losses in living conditions, natural environment, and psychological conditions, which results in lower welfare and satisfaction levels overall. Therefore, a middle-out redevelopment mode with a combination of government efforts and public participation are proposed as a solution for sustainable urban redevelopment.