Land surface deformation, including subsidence and uplift, has significant impacts on human life and the natural environment. In recent years, the city of Wuxi, China has experienced large-scale surface deformation following the implementation of a groundwater abstraction ban policy in 2005. To accurately measure the regional impacts and understand the underlying mechanisms, we investigated the spatiotemporal characteristics of surface deformation in Wuxi from 2015 to 2023 using 100 Sentinel-1A SAR images and the Persistent Scatterer InSAR (PS-InSAR) technique. The results revealed that surface deformation in Wuxi exhibited significant spatial and temporal variations, with some areas experiencing alternating trends of subsidence and uplift rather than consistent unidirectional change. To uncover the factors influencing this volatility, we conducted a comprehensive analysis focusing on groundwater, precipitation, and soil geology. This study found strong correlations between the groundwater level changes and surface deformation, with the soft soil geology of the area, characterized by alternating layers of sand and clay, further increasing the surface volatility. Moreover, we innovatively applied the Generalized Autoregressive Conditional Heteroskedasticity (GARCH) model, typically used in financial analyses, to analyze the subsidence displacement time series in Wuxi. Based on this model, we propose a new “Amplitude Factor” index to evaluate overall surface deformation volatility in the city. Our qualitative assessment of surface stability based on the Amplitude Factor was consistent with research findings, demonstrating the accuracy and effectiveness of the proposed model. These results provide valuable insights for urban planning, construction, and safety control, highlighting the importance of continuous monitoring and analysis of surface deformation volatility for the city’s future development and safety.