In this paper, a method for a multi-objective and simultaneous optimisation of building energy systems and retrofit is presented. Tailored to be suitable for the diverse range of existing buildings in terms of age, size, and use, it combines dynamic energy demand simulation to explore individual retrofit scenarios with an energy hub optimisation. Implemented as an epsilon-constrained mixed integer linear program (MILP), the optimisation matches envelope retrofit with renewable and high efficiency energy supply technologies such as biomass boilers, heat pumps, photovoltaic and solar thermal panels to minimise life cycle cost and greenhouse gas (GHG) emissions. Due to its multi-objective, integrated assessment of building transformation options and its ability to capture both individual building characteristics and trends within a neighbourhood, this method is aimed to provide developers, neighbourhood and town policy makers with the necessary information to make adequate decisions. Our method is deployed in a case study of typical residential buildings in the Swiss village of Zernez, simulating energy demands in EnergyPlus and solving the optimisation problem with CPLEX. Although common trade-offs in energy system and retrofit choice can be observed, optimisation results suggest that the diversity in building age and size leads to optimal strategies for retrofitting and building system solutions, which are specific to different categories. With this method, GHG emissions of the entire community can be reduced by up to 76% at a cost increase of 3% compared to the current emission levels, if an optimised solution is selected for each building category. (C) 2016 Elsevier Ltd. All rights reserved.