Abstract This paper presents optimization technique of residential and commercial buildings mixture within a mixed-use neighborhood, for enhanced energy performance and less GHG emission. The study, conducted for a Northern high latitude location, investigates several parameters related to building types, their density, floor area as well as ratio of specific building types to the total built area. Several methods are employed in the investigation, including energy simulations, statistical methods, optimization and decision making. A selection method of single optimal neighborhood scenario, based on the analysis of seasonal average hourly load is proposed. The results show that an optimal commercial to built land area ranges between 22% and 32%, with the remaining area dedicated to residential buildings. Multiple combinations of residential buildings that enhance energy performance while reducing GHG emissions are formed by 50% of detached houses and 50% of combined townhouses and apartment units (with different ratios). On the commercial side, near optimal combinations of commercial buildings area is constituted by 46–75% offices, 18–45% retails, and 6–9% supermarkets. Optimizing the hourly energy load profile, a scenario combining commercial land area of 25% with equal composition of office and retail buildings (47.5%), to residential area consisting of equal proportion of single detached and townhouses (48% each) can be selected.