The present invention is directed to a method for enhancing bone density or formation. In accordance with the method, a nucleic acid encoding an angiogenic protein is administered to a cell in a region of a bone such that the nucleic acid is expressed to produce the angiogenic protein, whereby bone density or formation is enhanced within the region. Optionally, a nucleic acid encoding an osteogenic protein is administered to a cell within the same region such that the nucleic acid is expressed to produce the osteogenic protein. The method can be employed to produce a bone graft having a cell harboring an exogenous nucleic acid encoding an angiogenic protein and, optionally, a cell harboring a nucleic acid encoding an osteogenic protein. To facilitate the inventive method, the invention also pertains to a recombinant viral vector having a nucleic acid encoding an angiogenic protein and a nucleic acid encoding an osteogenic protein.