The aluminum magnet wire is more abundant in nature than copper. This is making it cheaper compared to other metals.

One of the downsides of aluminum is that it is not as good a conductor as copper. Technically, you will need wires with a bigger diameter to carry the same electricity a copper wire does.

For example, to have the same conductivity as a copper wire with a cross-section of 100 mm, the aluminum wire will have to be about 156 mm.

Aluminum wiring can be dangerous in older homes that were built during the 1960s and 1970s.

An investigation carried out for the U.S. Consumer Product Safety Commission (CPSC) concluded that older homes built before 1972 (that had aluminum wiring) are 55 times more prone to electrical fires. The investigation looked only into the wire connections at the outlets. So these rates may even be higher.

There were no official investigations and statements about homes built with aluminum wiring after 1972.

Many homes built in that period may have aluminum wiring because the U.S. was going through some severe copper shortage at the time.

This led to many manufacturers switching to the more abundant aluminum for their wiring and, in some cases, even for the production of electrical panels and breakers (which is the case with Zinsco electrical panels).

The main thing that is making aluminum wiring dangerous is not necessarily the wiring itself. But instead, the connection points (The places where the wire connects to any switches, receptacles, junction boxes, panels, and more).

The problem with aluminum wiring is that when electricity passes through the wires, it generates heat. The heat will cause aluminum to expand as it gets hotter and contract when it cools off. Eventually, this causes the wiring connections to become loose. A loose connection like this can cause arcing, which can start an electrical fire.
Another problem comes from the diameter of the wires. The wires installed during that period were of a smaller diameter. And they cannot carry the electrical current that a copper wire of the same size can. This and the increased electrical demands we have nowadays can lead to overheating the wires creating a serious electrical fire hazard.
Some stranded aluminum wiring is still used in houses today for the main service entry wires and other 240 volt circuits like ranges and clothes dryers.

Federal Pacific Stab-Lok breaker panels were also known to have solid aluminum branch wiring. If you have a Federal Pacific panel in your home, our article Are Federal Pacific Breaker Panels Safe? Dangers & Cost to Replace we discuss some of the main problems concerning these panels.

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