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There was a great construction boom in 1955-60 in North America. The Copper shortage combined with spiked price suddenly gave an opportunity to Aluminum in house wiring. Aluminum was widely used as an electrical conductor/wiring material in the houses constructed until the early 1970s.
The grade of the Aluminum used was the one that was developed for the power transmission lines. It was not particularly good for house wiring. Wikipedia has some interesting details on the Aluminum wiring subject. Mechanical properties of Aluminum together with the poor workmanship standards constituted serious safety and fire hazards.
Aluminum itself may not have any issue but when used with other components in electrical wiring it increasing the fire hazard exponentially. Having said that there are no legal issues but one must adhere structurally to the code to safeguard your family against all the fire risks. Here is one Notice/publication by Alberta Government about Aluminum wiring in residences.
Aluminum can mainly pose a fire risk in 3 different ways;