No home button functionality on an iPhone 7

Hey there! I have an iPhone 7 that I bought shortly after launch day. A week ago my home button stopped working. It was working just fine in the evening and then I plugged my iPhone in and left it charging overnight. When I woke up in the morning I saw an alert on the phone saying: “Home button may need service. In the meantime you can use the onscreen home button below”. The fun fact is that my TouchID still works as normal. I have tried restarting, hard reseting and even restoring iOS via iTunes. None of these seemed to fix the issue. Please help!