Abstract: The urban village renovation is a critical issue in promoting high-quality urban development. Taking the West Coast New Area of Qingdao, Shandong Province as a case study, this research examines the imbalance between physical space renewal and socio-cultural needs in urban village renovation, as well as corresponding solutions. To systematically deconstruct the core contradictions of urban villages in terms of spatial supply, social structure, and cultural continuity, this study adopts a mixed-methods approach combining bibliometric analysis, policy text analysis, and field investigations. Based on a comprehensive review of three decades of research evolution and local policy trends, this study introduces Maslow's hierarchy of needs to construct an analytical framework for a stratified demand-response mechanism. The findings reveal that urban village renovation in China has shifted from an 'efficiency-first' model to a policy orientation that 'emphasizes both fairness and efficiency'. Nevertheless, current practices are still plagued by challenges such as inefficient spatial supply, fragmented demand among different groups, and weakened cultural identity, which necessitate innovative governance models. Accordingly, this study proposes an inclusive redevelopment pathway featuring the tri-dimensional coordination of 'space-institution-culture', providing a practical solution that balances social benefits and sustainable development for urban village renovation.