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The explanationsI read were slightly different

At one point during the 1960s I think aluminium wiring was permitted by code in residential structures. Then after a series of fires, it was banned. As I said earlier, NEC being part of NFC, is written at the behest of the insurance companies.

The explanation I've always read was that the alloy of aluminum used was relatively soft. Under compression such as under a screw head in a receptacle or light switch, eventually, plastic deformation of the wire would cause it to no longer offer resistance to the screw, it would loosen and the resulting arcing would cause oxidation, more arcing and eventually a fire. Most private homes in the US not in high rise apartment buildings are wood frame and so are prone to fire. Originally, special aluminum wiring fixtures were required to be installed. These had spring loading devices which would maintain the tension but homeowners and others failed to use them consistantly in small jobs around their houses and so set the stage for tragedy. Aluminium is not quite as good a conductor as copper but it is much cheaper. Eventually, aluminium wire was no longer allowed by the code. It's a money savings idea which did not work out. This is one more reason those designing anything must use their judgement and not just blindly follow the code. Often the experience of engineers, electricians, and code officials is more valuable but of course you cannot defy the code by ignoring it, you must meet or exceed it and knowing when and how is what comes with years of hands on work and experience. All things being equal, the resale value of homes still having aluminium wire is often tens of thousands of dollars less because it is assumed they will have to be completely rewired. Many people won't even consider buying them.

Interestingly, you can buy circuit breaker panels and transformers made with aluminium bus or wire and high tension wire is often aluminium. But these are much harder alloys.

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