Earlier quoted context omitted.
Do you mean free market? Because I feel like land use restrictions are antithetical to a free market. In which case, your comment makes no sense.
The restrictions are contracts between two parties, not the state imposing them, so it's 100% the free market. The state meddling in the market would be if two parties agree to a contract, and then one party gets the state to pass a law that changes the terms of the contract to the benefit of one party. Like 'right to work laws,' for example.
For a more obvious example: if all the companies that sell smartphones agreed to form a cartel to raise prices, the state preventing them from making that agreement would make the market for smartphones more free, not less.