Yes, the economic freedom has declined under Obama, yet their living standards remain the best of their peers, including New Zealand, Australia, and Canada. Both have better economic freedom scores, but lower GDP per capita, which measures economic growth.
Again, the Heritage Foundation is very conservative and biased. I've already contacted them about some of their questionable assessments and they don't have good responses.
For instance, they show Canada's economic growth of 2.4 percent, but that was in 2014. It was actually 1.2 percent in 2015.
https://www.focus-economics.com/country-indicator/canada/gdp
Then go to Trading Economics and it's even lower.
http://www.tradingeconomics.com/canada/gdp-growth-annual